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Lynna [10]
3 years ago
15

Suppose that annual output in year 1 in a 3-good economy is 3 quarts of ice cream, 1 bottle of shampoo, and 3 jars of peanut but

ter. In year 2, the output mix changes to 5 quarts of ice cream, 2 bottles of shampoo, and 2 jars of peanut butter. If the prices in both years are $4 per quart for ice cream, $3 per bottle of shampoo, and $2 per jar of peanut butter, what was the economy's GDP in year 1? What was its GDP in year 2?
Business
1 answer:
My name is Ann [436]3 years ago
6 0

Answer:

$21

$30

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP in year 1 = (3 × $4) + (1 ×$3 ) + (3 x $2) =$21

GDP in year 2 = ( 5 x $4) + (2 x$3 ) + (2 x $2) = $30

I hope my answer helps you

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