1988
1989
Quantity
Price ($)
Quantity Price ($)
Milk
10
1.00
15
1.20
Butter
8
0.50
20
0.50
Eggs
8
0.25
4
1.00
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?
(1 point)
$16
O $24
$26
O $32
okay

1. In a hypothetical country, Nominal GDP has increased by 5%. Which of the following must be true? Answer: Either price, economic output, or both has increased

2. The GDP for a hypothetical economy is determined to be 6 billion dollars in year 1 and 7.5 billion dollars in year 2. What is the growth rate of GDP from year 1 to year 2? Answer: 25%

3. The table above gives the quantities and prices for a hypothetical economy that only produces sunglasses and sunscreen. What is the growth rate of Nominal GDP from 2000 to 2001? Answer: 6.25%

4. Given a Real GDP of $5,000 and a Nominal GDP of $5,500, calculate the GDP deflator. Round your answer to the nearest tenth if necessary.

Answer: 110

5. 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? Answer: $26

marvineetesh3 marvineetesh3 · Answer 2 · 2022-04-09T13:35:41+02:00

The Real GDP by taking 1988 as the base year, and 1989 as a current year, is $26.

What is Real GDP?

Real GDP is defined as a measure of a gross domestic product of a country that has been corrected for inflation. It is computed by the formula given below:

[tex]\text{Real GDP} = \text{Base Year Price} \times \text {Current Year Quantities}[/tex]

Computation of Real GDP:

The real GDP is computed by multiply the base year Price of Milk, Butter, and Egg to current year's quantities of Milk, Butter, and Egg, and then add all the results.

According to the given information, The amount of real GDP is:

[tex]\text{Real GDP}=(\$1 \times 150)+ (\$0.50 \times 20)+(\$0.25 \times 2)\\\text{Real GDP} = \$26[/tex]

Therefore, option C is correct.

Learn more about the Real GDP, refer to:

https://brainly.com/question/15171681