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. The value for this economy's nominal GDP in year 2 is
A) $120.
B) $122.
C) $132.
D) $140.

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. The value for this economy's nominal GDP in year 2 is
A) $120. 
B) $122. 
C) $132. 
D) $140.

Quizplus · Accepted Answer

Nominal GDP in year 2 can be calculated by summing up the current year prices of all final goods and services produced in the economy, which are: 
- 10 units of Good X at a current price of $10 = $100 
- 15 units of Good Y at a current price of $4 = $60

Therefore, nominal GDP in year 2 is $100 + $60 = $160.

Refer to the Information Provided in Table 21