Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the nominal GDP for this year?
$$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Barrels of } \
\text { Oil Sold }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 80,000 & \$ 60 \
\hline \text { This year } & 83,000 & \$ 63 \
\hline
\end{array}$$
A)$5,104,500
B)$5,229,000
C)$4,920,000
D)$4,800,000

Question

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the nominal GDP for this year?
$$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Barrels of } \
\text { Oil Sold }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 80,000 & \$ 60 \
\hline \text { This year } & 83,000 & \$ 63 \
\hline
\end{array}$$
A)$5,104,500
B)$5,229,000
C)$4,920,000
D)$4,800,000

Quizplus · Accepted Answer

Nominal GDP for this year is calculated by multiplying the quantity of goods produced (in this case, barrels of oil) by their current prices. For this year, that's 83,000 barrels * $63/barrel = $5,229,000.

Consider the Data Shown in the Table A)$5,104,500 B)$5,229,000 C)$4,920,000 D)$4,800,000

Consider the Data Shown in the Table A)$5,104,500
B)$5,229,000
C)$4,920,000
D)$4,800,000