Use the following to answer questions :
Table: Price and Output Data
-(Table: Price and Output Data) Look at the table Price and Output Data. The value of year 2's output in real dollars is:
A)$4.
B)$12.
C)$15.
D)$16.

Question

Use the following to answer questions :
Table: Price and Output Data 
-(Table: Price and Output Data) Look at the table Price and Output Data. The value of year 2's output in real dollars is:
A)$4. 
B)$12. 
C)$15. 
D)$16.

Quizplus · Accepted Answer

To calculate the real output for year 2, we need to use the formula: Real Output = (Nominal Output ÷ Price Index) x 100.
Plugging in the values from the table, we get:
Real Output = (20 ÷ 1.33) x 100
Real Output = 15.04
Rounding off to the nearest dollar, we get that the value of year 2's output in real dollars is $15. Therefore, the best choice is C.

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