Answer:
The real GDP is $150 and GDP is $550
Explanation:
There are five goods in the economy, A-E.
The current-year quantity of each is 10A, 20B, 30C, 40D, and 50E.
Current-year prices are $1 for each unit of A, $2 for each unit of B, $3 for each unit of C, $4 for each unit of D, and $5 for each unit of E.
Base-year prices are $1 for each good.
The real GDP is the value of output produced at base year price.
Real GDP
= 10 +20 + 30 + 40 + 50
= $150
The nominal GDP is the value of output produced at the current prices.
Nominal GDP
= 1 × 10 + 2 × 20 + 3 × 30 + 4 × 40 + 5 × 50
= 10 + 40 + 90 + 160 + 250
= $550
