Question

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012. Good2012 Price2012 Quantity2013 Price2013 Quantity A$2.00 500$2.50600 B$4.001,000$5.00900 C$2.00 200$1.00300 What was the real gross domestic product (GDP) in 2013

Answer 1

$5400

Step-by-step explanation:

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

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

($2 x 600) + ($4 x 900) + ($2 x 300) = $5400