Units of Price Per Unit Output 3 Year $3 4 4 7 7 8 8 Refer to the above data. Assume an economy that is producing only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the next question(s) on the basis of these data. The nominal GDP for year 4 is: 1) $49. 2) $35. 3) $55. 4) $40. 12 3 45
Units of Price Per Unit Output 3 Year $3 4 4 7 7 8 8 Refer to the above data. Assume an economy that is producing only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the next question(s) on the basis of these data. The nominal GDP for year 4 is: 1) $49. 2) $35. 3) $55. 4) $40. 12 3 45
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![### Table Data
The table provided is structured to show the output and pricing of a single product over a five-year period.
**Year | Units of Output | Price Per Unit**
1 | 3 units | $3
2 | 4 units | $4
3 | 6 units | $5
4 | 7 units | $7
5 | 8 units | $8
### Description
This data table represents an economy producing only one product, with year 3 designated as the base year. Each year's output and price per unit are specified, and this data is used to understand economic concepts such as GDP.
### Question
Using the table, calculate the nominal GDP for year 4. The options provided are:
1) $49
2) $35
3) $55
4) $40
To calculate nominal GDP, multiply the units of output by the price per unit for year 4:
\[ \text{Nominal GDP for year 4} = 7 \text{ units} \times \$7 = \$49 \]
Therefore, the correct answer is option 1: $49.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa74b6a8e-f1b7-4d29-84ad-edc51d36ecf1%2F2e292c38-f663-4363-8be4-617594e77714%2Fpxsjszn_processed.png&w=3840&q=75)
Transcribed Image Text:### Table Data
The table provided is structured to show the output and pricing of a single product over a five-year period.
**Year | Units of Output | Price Per Unit**
1 | 3 units | $3
2 | 4 units | $4
3 | 6 units | $5
4 | 7 units | $7
5 | 8 units | $8
### Description
This data table represents an economy producing only one product, with year 3 designated as the base year. Each year's output and price per unit are specified, and this data is used to understand economic concepts such as GDP.
### Question
Using the table, calculate the nominal GDP for year 4. The options provided are:
1) $49
2) $35
3) $55
4) $40
To calculate nominal GDP, multiply the units of output by the price per unit for year 4:
\[ \text{Nominal GDP for year 4} = 7 \text{ units} \times \$7 = \$49 \]
Therefore, the correct answer is option 1: $49.
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