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10 December, 12:06

Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1. Nominal GDP in the current year isa. $110.

b. $115.

c. $45.

d. $90.

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Answers (1)
  1. 10 December, 14:45
    0
    Nominal GDP = $ 115

    Explanation:

    Nominal Income is value of all goods & services produced by an economy during a given period of time, evaluated at constant prices.

    Given : 3 goods A, B, C and their respective prices & quantities;

    Nominal GDP = Σ [ (Price of all goods) x (quantity of all goods) ]

    [ (2) x (10) ] + [ (3) x (30) ] + [ (5) x (1) ]

    20 + 90 + 5

    = $ 115
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