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Year Price of Good 1 Quantity of Good 1 Price of Good 2 Quantity of Good 2 2009

ID: 1258732 • Letter: Y

Question

Year

Price of Good 1

Quantity of Good 1

Price of Good 2

Quantity of Good 2

2009

$20

50

$10

20

...

...

...

...

...

2014

$30

60

$20

30

2015

$33

70

$22

35

Consider the table above that shows prices and quantities of two goods produced in a hypothetical country. The base year is 2009. The nominal GDP in 2014 equals:

Nominal GDP in 2014 = 1,800


Nominal GDP in 2014 = 1,900

Nominal GDP in 2014 = 2,000

Nominal GDP in 2014 = 2,200

Nominal GDP in 2014 = 2,400

None of the above.

Year

Price of Good 1

Quantity of Good 1

Price of Good 2

Quantity of Good 2

2009

$20

50

$10

20

...

...

...

...

...

2014

$30

60

$20

30

2015

$33

70

$22

35

Explanation / Answer

nOMINAL gdp IN 2014 is 2400 as it is equal to 60*30+20*30 = 1800+600 = 2400