To calculate the Real GDP, we need to adjust the nominal GDP for changes in prices using the base year prices.
First, calculate the nominal GDP for 2020:
Nominal GDP = (Price in 2020 x Quantity in 2020) + (Price in 2020 x Quantity in 2020)
Nominal GDP = (15,000 x 9,000) + (18,000 x 8,000)
Nominal GDP = 135,000,000 + 144,000,000
Nominal GDP = 279,000,000
Next, calculate the Real GDP using the base year prices (2000 prices):
Real GDP = (Price in 2000 x Quantity in 2020) + (Price in 2000 x Quantity in 2020)
Real GDP = (10,000 x 9,000) + (12,000 x 8,000)
Real GDP = 90,000,000 + 96,000,000
Real GDP = 186,000,000
Therefore, the Real GDP of the automobile industry in the given economy in 2020 is 186 million dollars.
2000 2020 Price ($) Quantity Price ($) Quantity Cars 10,000 5,000 15,000 9,000 Trucks 12,000 3,000 18,000 8,000 An economy is analyzing trends in the automobile industry and wants to determine the economic output adjusted for changes in price over the last 20 years. Using 2000 as the base year, what is the Real GDP of the automobile industry in the given economy in 2020? (1 point) Responses 86 million dollars 86 million dollars 186 million dollars 186 million dollars 188 million dollars 188 million dollars 279 million dollars 279 million dollars Skip to navigation
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