The table above gives the prices and quantities for a hypothetical country that only produces milk, butter, and eggs. With 1988 as the base year, what is the Real GDP in 1989?

Question

(1 point)
Responses

$24
24 dollars

$32
32 dollars

$16
16 dollars

$26

Answer 1

To calculate the Real GDP for 1989 with 1988 as the base year, we need the prices and quantities of milk, butter, and eggs for both years. However, since you did not provide the actual table with the prices and quantities, I cannot calculate the Real GDP directly.

The general formula for calculating Real GDP is:

\[ \text{Real GDP} = \sum (\text{Base Year Prices} \times \text{Current Year Quantities}) \]

You would multiply the quantities of each product in 1989 by the prices from the base year (1988) and sum them up.

If you provide the quantities and prices, I can help calculate the Real GDP for 1989. Otherwise, based on the given response options, it seems like you might expect a simple numerical answer, but without the necessary data, I can't determine which option is correct.