Question

If in a given year an Economy produces 200 units of textiles and 300 units of Soybeans, and the price of textiles is $1 and the price of Soybeans is $2, Nominal GDP is equal to ________, while Real GDP is equal to __________.a) $800; $800
b) not enough information
c) $800; 500 textiles units
d) $800; 800 Textiles units

Answer 1

Answer:

option D

Explanation:

given,

200 units of textile at the price of $1.

300 units of soybeans at the price $2.

nominal GDP = $\sum no.\ unit \times price$

                      = 200 × 1 + 300 × 2

                      = $ 800                                      

hence, the nominal GDP is $800.                            

As the given GDP is of the same year then the real  GDP will be same as Nominal GDP.

hence, the correct answer is option D