Question
Suppose an economy’s entire output is cars. In Year 1, all manufacturers produce cars at $15,000 each; the real GDP is $300,000. In Year 2, 20 cars are produced at $16,000 each. What is the real GDP in Year 2?
$20,000
$300,000
$280,000
$320,000
Answers
GPT-4o mini
To calculate the real GDP in Year 2, we need to consider how many cars are produced and their price.
In Year 2:
- 20 cars are produced
- Each car is priced at $16,000
To find the total output (real GDP) for Year 2, we multiply the number of cars produced by their price:
Total output (real GDP) = Number of cars × Price per car
Total output (real GDP) = 20 cars × $16,000 per car = $320,000
Therefore, the real GDP in Year 2 is **$320,000**.
In Year 2:
- 20 cars are produced
- Each car is priced at $16,000
To find the total output (real GDP) for Year 2, we multiply the number of cars produced by their price:
Total output (real GDP) = Number of cars × Price per car
Total output (real GDP) = 20 cars × $16,000 per car = $320,000
Therefore, the real GDP in Year 2 is **$320,000**.