(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. Nominal GDP in 2018 was: $$\begin{array} { | l | l | l | l | l | l | }
\hline \text { Product } & \text { 2018 Output } & \begin{array} { l }
\text { 2018 Prices } \
\text { (base year) }
\end{array} & \text { Product } & \text { 2019 Output } & \text { 2019 Prices } \
\hline \text { Peanut butter } & 200 \text { units } & \text { \$1 per unit } & \text { Peanut butter } & 250 & \text { \$1.10 per unit } \
\hline \text { Jelly } & 100 \text { units } & 2 \text { per unit } & \text { Jelly } & 100 & 2.50 \text { per unit } \
\hline
\end{array}$$
A)$200.
B)$200
C)$400.
D)$400
E)$450.
F)$450
G)$525
H)$525.

Question

(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. Nominal GDP in 2018 was: $$\begin{array} { | l | l | l | l | l | l | } 
\hline \text { Product } & \text { 2018 Output } & \begin{array} { l } 
\text { 2018 Prices } \
\text { (base year) }
\end{array} & \text { Product } & \text { 2019 Output } & \text { 2019 Prices } \
\hline \text { Peanut butter } & 200 \text { units } & \text { \$1 per unit } & \text { Peanut butter } & 250 & \text { \$1.10 per unit } \
\hline \text { Jelly } & 100 \text { units } & 2 \text { per unit } & \text { Jelly } & 100 & 2.50 \text { per unit } \
\hline
\end{array}$$
A)$200.
B)$200
C)$400.
D)$400
E)$450.
F)$450
G)$525
H)$525.

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of each good produced by its current price. In 2018, 200 units of peanut butter were produced and sold at $1 per unit, and 100 units of jelly were produced and sold at $2 per unit. So, the nominal GDP in 2018 was 200 x $1 + 100 x $2 = $400.