Data for 2009 Data for 2010 Item Ouantity Price Quantity Price Bread Soda 50 $4.
ID: 2439904 • Letter: D
Question
Data for 2009 Data for 2010 Item Ouantity Price Quantity Price Bread Soda 50 $4.00 70 $3.00 50 $5.0050$6.00 5) The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2009. What is nominal GDP in 2009? (15 Points) A) $410 B) $450 C) $900 D) S550 E) S460 6) The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2010. What is real GDP in 2010? (15 Points) A) $530 B) S1080 C) $510 D) S210 E) S300 7) A south sea island produces only coconuts. In 2008, the price of a coconut is SI and the quantity produced is 200. In 2009, the price of a coconut is $1.50 and the quantity produced is 250. 2008 is the base year. Real GDP in 2009 is A) S375 B) S350 C) S200 (15 Points) D) S250 E) S1.50Explanation / Answer
5. Nominal GDP in 2009 = (50 x $4) + (50 x $5)
= $ 200 + $250
= $ 450
6. Real GDP 2010 (2010 as base year) = (70 x $3) + (50 x $6)
= $210 + $300
= $510
But if 2009 is taken as base year then Real GDP = (70 x $4) + (50 x $5)
= $280 + $250
= $530
7. Real GDP for 2009 (2008 as base year) = 250 x $1
= $250
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