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Year 1 Year 2 Price Quantity Price Quantity Golf Balls Pizzas Suppose that in Ye

ID: 1192394 • Letter: Y

Question

Year 1

Year 2

Price

Quantity

Price

Quantity

Golf Balls

Pizzas


Suppose that in Year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. Using Year 1 as the base year, the value of real GDP in Year 1 is _____ and of real GDP in Year 2 is ________. (It might help you to put the information in a table like the one above.)

$900; $970

$900; $1000

$970; $1077.50

$1000; $1077.50

Year 1

Year 2

Explanation / Answer

$900; $970

a.

$900; $970