(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2018 is the base year, real GDP in 2018 was: $$\begin{array} { | l | l | l | l | l | }
\hline & \text { 2018 Output } & \text { 2018 Prices } & \text { 2019 Output } & \text { 2019 Prices } \
\hline \text { Lemonade } & 200 \text { glasses } & \text { \$1 per glass } & 220 \text { glasses } & \text { \$1 per glass } \
\hline \text { Cookies } & 100 \text { cookies } & \text { \$2 per cookie } & 100 \text { cookies } & \text { \$2.25 per cookie } \
\hline
\end{array}$$
A)$400
B)$400.
C)$420.
D)$420
E)$425.
F)$425
G)$445.
H)$445

Question

(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2018 is the base year, real GDP in 2018 was: $$\begin{array} { | l | l | l | l | l | } 
\hline & \text { 2018 Output } & \text { 2018 Prices } & \text { 2019 Output } & \text { 2019 Prices } \
\hline \text { Lemonade } & 200 \text { glasses } & \text { \$1 per glass } & 220 \text { glasses } & \text { \$1 per glass } \
\hline \text { Cookies } & 100 \text { cookies } & \text { \$2 per cookie } & 100 \text { cookies } & \text { \$2.25 per cookie } \
\hline
\end{array}$$
A)$400
B)$400.
C)$420.
D)$420
E)$425.
F)$425
G)$445.
H)$445

Quizplus · Accepted Answer

Real GDP in the base year (2018) is calculated by multiplying the quantities of goods produced in that year by their prices in the same year. For lemonade, this is 200 glasses * $1/glass = $200. For cookies, it's 100 cookies * $2/cookie = $200. Adding these together gives $400.

(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies A)$400 B)$400

(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies A)$400
B)$400