Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1. Nominal GDP in the current year isa. $110.

b. $115.

c. $45.

d. $90.

Question

Carley Pugh

Business

21 December, 19:38

Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1. Nominal GDP in the current year isa. $110.

b. $115.

c. $45.

d. $90.

+4

Answers (1)

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Maestro · Answer 1

Nominal GDP = $ 115

Explanation:

Nominal Income is value of all goods & services produced by an economy during a given period of time, evaluated at constant prices.

Given : 3 goods A, B, C and their respective prices & quantities;

Nominal GDP = Σ [ (Price of all goods) x (quantity of all goods) ]

[ (2) x (10) ] + [ (3) x (30) ] + [ (5) x (1) ]

20 + 90 + 5

= $ 115

Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1. Nominal GDP in the current year isa. $110.b. $115.c. $45.d. $90.

Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1. Nominal GDP in the current year isa. $110.

b. $115.

c. $45.

d. $90.