Question

A country produces only one good. It produced​ 5,000 units of the good during Year 1 and​ 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was​ $280 and it was​ $320 in Year 2. Suppose Year 1 is taken as the base year for the calculation of GDP. The nominal GDP of the country for Year 2 was:______.A) $1, 920,000 B) $2, 510,000 C) $174,000 D) $180,000

Answer 1

Answer:

.A) $1, 920,000

Explanation:

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

Nominal GDP is the GDP of country using current year prices

Nominal GDP = current year price × quantity

(6000 × 320) = $1,920,000

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