Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for this year?
$$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Tons of Frozen } \
\text { Fish Sold }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 100 & \$ 1,800 \
\hline \text { This year } & 105 & \$ 1,850 \
\hline
\end{array}$$
A)$180,000
B)$191,625
C)$182,500
D)$194,250

Question

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for this year?
$$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Tons of Frozen } \
\text { Fish Sold }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 100 & \$ 1,800 \
\hline \text { This year } & 105 & \$ 1,850 \
\hline
\end{array}$$
A)$180,000
B)$191,625
C)$182,500
D)$194,250

Quizplus · Accepted Answer

Real GDP is calculated using the prices of the base year. In this case, the base year is last year. So, the real GDP for this year is:Real GDP = (Tons of Frozen Fish Sold this year) * (Actual Price last year)Real GDP = 105 * 1,800Real GDP = $191,625

Consider the Data Shown in the Table A)$180,000 B)$191,625 C)$182,500 D)$194,250

Consider the Data Shown in the Table A)$180,000
B)$191,625
C)$182,500
D)$194,250