2012 2013 Product Quantity Price Quantity Price Sweatshirts 50 $35.00 55 $38.00 Dental examinations 50 $75.00 60 $42.00 Coffee drinks 1,000 $4.00 1,200 $4.50 Refer to the table above. Suppose that a simple economy produces only three goods and services: sweatshirts, dental examinations and coffee drinks. Assume 2012 is the base year. Using the information in the abo table, real GDP in 2013 equals
2012 2013 Product Quantity Price Quantity Price Sweatshirts 50 $35.00 55 $38.00 Dental examinations 50 $75.00 60 $42.00 Coffee drinks 1,000 $4.00 1,200 $4.50 Refer to the table above. Suppose that a simple economy produces only three goods and services: sweatshirts, dental examinations and coffee drinks. Assume 2012 is the base year. Using the information in the abo table, real GDP in 2013 equals
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Transcribed Image Text:2012
2013
Product
Quantity
Price
Quantity
Price
Sweatshirts
50
$35.00
55
$38.00
Dental examinations 50
$75.0
60
$42.00
Coffee drinks
1,000
$4.00
1,200
$4.50
Refer to the table above. Suppose that a simple economy produces only
three goods and services: sweatshirts, dental examinations and coffee
drinks. Assume 2012 is the base year. Using the information in the above
table, real GDP in 2013 equals
Transcribed Image Text:drinks. Assume 2012 is the base year. Using the information in the above
table, real GDP in 2013 equals
$8,080
O $11,225
O $8,500
$9,170
O $10,010
Expert Solution
Step 1
Nominal GDP measures the market value of goods and services using current prices whereas real GDP uses constant sets of prices.
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