Consider the data shown in the table. Assume that the economy produces only textbooks. What is the real GDP for this year?
$$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Textbooks } \
\text { Sold }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 5,000 & \$ 50 \
\hline \text { This year } & 5,250 & \$ 55 \
\hline
\end{array}$$
A)$250,000
B)$262,500
C)$288,750
D)$275,625

Question

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the real GDP for this year?
$$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Textbooks } \
\text { Sold }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 5,000 & \$ 50 \
\hline \text { This year } & 5,250 & \$ 55 \
\hline
\end{array}$$
A)$250,000
B)$262,500
C)$288,750
D)$275,625

Quizplus · Accepted Answer

Real GDP is calculated using the prices from a base year to eliminate the effects of inflation. Using last year's price of $50 per textbook, this year's real GDP is 5,250 textbooks sold * $50 = $262,500. However, the correct calculation for real GDP should reflect the quantity of goods produced in the current year valued at the prices of a base year. The provided answer choices seem to reflect a misunderstanding or a typographical error in the calculation or the presentation of options. Given the data and typical calculation methods, none of the provided choices accurately reflect the correct calculation of real GDP based on the standard formula. The correct calculation based on the provided data should indeed result in $262,500, which aligns with option B, not D as initially indicated. This discrepancy suggests a need for clarification or correction in the presentation of the answer choices or the explanation.

Consider the Data Shown in the Table A)$250,000 B)$262,500 C)$288,750 D)$275,625

Consider the Data Shown in the Table A)$250,000
B)$262,500
C)$288,750
D)$275,625