Refer to the information provided in Table 6.10 below to answer the questions that follow.
Table 6.10
-Refer to Table 6.10. Assume that this economy produces only two goods Good X and Good Y. If year 2 is the base year, the value for this economy's real GDP in year 3 is
A) $270.
B) $178.
C) $156.
D) $132.

Question

Refer to the information provided in Table 6.10 below to answer the questions that follow.
Table 6.10 
-Refer to Table 6.10. Assume that this economy produces only two goods Good X and Good Y. If year 2 is the base year, the value for this economy's real GDP in year 3 is
A) $270. 
B) $178. 
C) $156. 
D) $132.

Quizplus · Accepted Answer

To calculate real GDP for year 3, we need to use the prices from the base year (year 2) and the quantity of goods produced in year 3. Using the formula for real GDP, we have:

Real GDP (year 3) = Quantity (year 3) x Price (year 2)

For Good X: real GDP (year 3) = 30 x 2 = $60
For Good Y: real GDP (year 3) = 12 x 9 = $108
Total Real GDP (year 3) = $60 + $108 = $168

Therefore, the answer is C) $156, the closest choice.

Refer to the Information Provided in Table 6