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

188 million dollars
188 million dollars

86 million dollars
86 million dollars

186 million dollars
186 million dollars

279 million dollars

1 answer

To determine the Real GDP of the automobile industry in 2020 using 2000 as the base year, we would typically need specific information about nominal GDP figures and the relevant price indices over the years to adjust for inflation.

However, since the question is presented in a multiple-choice format without additional data, we can infer that one of the provided options is correct. If we were to base the answer solely on the responses given, without further calculations or context, we would choose one of the values presented.

The potential Real GDP options are:

  • 188 million dollars
  • 86 million dollars
  • 186 million dollars
  • 279 million dollars

Without additional context or calculations, we cannot definitively determine the Real GDP. If the question is designed for selection, you would typically choose the answer that appears to be most fitting based on an understanding of the industry trends at the time (for example, significant growth or decline trends in the automobile sector).

However, if we assume you are looking for guidance based on common economic trends during this period (considering things like the 2008 recession and subsequent recovery), 186 million dollars may be a reasonable choice amidst the options provided, purely based on historical knowledge of GDP trends in that industry.

Ultimately, without the necessary calculation data, I would recommend verifying against methodology used to determine these outputs if you have access to the historical price indices and nominal GDP for the automobile sector.