Question

Suppose GDP consists of wheat and rice. In 2015, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold at $2 per bushel. If the price of wheat was $2 per bushel and the price of rice was $1 per bushel in 2014, the base year, nominal 2015 GDP is___________.

Answer 1

$100

Step-by-step explanation:

Nominal GDP is the total output of an economy at current year prices

Nominal GDP = (20 × $4) + (10 × $2) = $100

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