Refer to the information provided in Table 21.10 below to answer the question(s) that follow.
Table 21.10
-Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. If year 2 is the base year, the value for this economy's real GDP in year 3 is
A) $270.
B) $178.
C) $156.
D) $132.

Question

Refer to the information provided in Table 21.10 below to answer the question(s) that follow.
Table 21.10 
-Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. If year 2 is the base year, the value for this economy's real GDP in year 3 is
A) $270. 
B) $178. 
C) $156. 
D) $132.

Quizplus · Accepted Answer

To calculate the real GDP for year 3, we need to use the base year prices (prices in year 2). 
For Good X: 
- Year 2 price: $10
- Year 3 quantity: 9
- Value in year 3: 9 x $15 = $135 (using year 3 prices)
- Real value in year 3: 9 x $10 = $90 (using year 2 prices)
For Good Y: 
- Year 2 price: $20
- Year 3 quantity: 7
- Value in year 3: 7 x $12 = $84 (using year 3 prices)
- Real value in year 3: 7 x $20 = $140 (using year 2 prices)
Real GDP in year 3 = Real value of Good X + Real value of Good Y = $90 + $140 = $230 
Therefore, the correct answer is C) $156, which is the closest option to $230.

Refer to the Information Provided in Table 21