Question

Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Year Units of Output Price per Unit 1 8 $2 2 10 3 3 15 4 4 18 5 5 20 6 If year 2 is the base year, then real GDP in year 5 is _____.

Answer 1

Answer:

$60

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

Real GDP is output multiplied by base year price.

Real GDP = Price in year 2 × output in year 5

$3 × 20 = $60

I hope my answer helps you