A tiny fictional country produces a single good. In 2010, the country produced a total of 5,000 units at a price of $2
per unit. In 2011, the country produced a total of of 6,000 units at a price of $3
per unit. Using 2010 as the base year, what was this country's real GDP in 2011?(1 point)
Responses
$18,000
18,000 dollars
$15,000
15,000 dollars
$10,000
10,000 dollars
To calculate the country's real GDP in 2011 using 2010 as the base year, we need to adjust the 2011 GDP value for inflation.
First, calculate the nominal GDP in 2011:
6,000 units * $3 per unit = $18,000
Next, calculate the GDP deflator using 2010 as the base year:
GDP deflator = (Nominal GDP / Real GDP) x 100
GDP deflator = ($18,000 / $10,000) x 100
GDP deflator = 180
Now, calculate the real GDP in 2011:
Real GDP = (Nominal GDP / GDP deflator) x 100
Real GDP = ($18,000 / 180) x 100
Real GDP = $10,000
Therefore, the country's real GDP in 2011 using 2010 as the base year was $10,000.
So, the correct answer is $10,000.