The Real GDP can be calculated using the formula:
Real GDP = (Price in Base Year * Quantity in Current Year) + (Price in Base Year * Quantity in Current Year)
For cars: (10,000 * 9,000) + (10,000 * 5,000) = 90,000,000 + 50,000,000 = 140,000,000
For trucks: (12,000 * 8,000) + (12,000 * 3,000) = 96,000,000 + 36,000,000 = 132,000,000
Total Real GDP = 140,000,000 + 132,000,000 = 272,000,000
Therefore, the Real GDP of the automobile industry in the given economy in 2020 is 272 million dollars.
The closest response is 279 million dollars.
Use the 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?
(1 point)
Responses
186 million dollars
186 million dollars
188 million dollars
188 million dollars
279 million dollars
279 million dollars
86 million dollars
86 million dollars
1 answer
1 answer