To calculate the Real GDP, we need to multiply the quantity of each item produced in 2020 by its price in the base year (2000) and sum the results.
For cars in 2020: (5,000 * $15,000) = $75 million
For trucks in 2020: (8,000 * $18,000) = $144 million
Adding these together, the Real GDP of the automobile industry in 2020 is $75 million + $144 million = $219 million.
Therefore, the correct answer is C) 188 million dollars.
Use table to answer the question.
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?
A. 279 million dollars
B. 86 million dollars
C. 188 million dollars
D. 186 million dollars
1 answer
1 answer