$$\begin{array} { | c | c | c | }
\hline \text { Year } & \text { Units of Output } & \text { Price Per Unit } \
\hline 1 & 3 & \$ 3 \
\hline 2 & 4 & 4 \
\hline 3 & 6 & 5 \
\hline 4 & 7 & 7 \
\hline 5 & 8 & 8 \
\hline
\end{array}$$ Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a ?ve-year period are shown in the table. The nominal GDP for year 4 is
A) $49.
B) $55.
C) $40.
D) $35.

Question

$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Units of Output } & \text { Price Per Unit } \
\hline 1 & 3 & \$ 3 \
\hline 2 & 4 & 4 \
\hline 3 & 6 & 5 \
\hline 4 & 7 & 7 \
\hline 5 & 8 & 8 \
\hline
\end{array}$$ Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a ?ve-year period are shown in the table. The nominal GDP for year 4 is
A) $49.
B) $55.
C) $40.
D) $35.

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of output by the price per unit. In year 3, the base year, the nominal GDP is 3 * 5 = $15. In year 4, the nominal GDP is 7 * 7 = $49.

Assume an Economy That Makes Only One Product and That