Subjects economics

Real Gdp Calculation B32Bd9

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1. **State the problem:** Calculate the current-year real GDP using base-year prices. 2. **Formula:** Real GDP in current year = \( \sum (\text{quantity in current year} \times \text{price in base year}) \) 3. **Given data:** - Loaves of bread: base year price = 1.00, current year quantity = 80 - Cartons of milk: base year price = 1.00, current year quantity = 100 4. **Calculate real GDP:** \[ \text{Real GDP} = (80 \times 1.00) + (100 \times 1.00) = 80 + 100 = 180 \] 5. **Interpretation:** The current-year real GDP, using base-year prices, is 180. **Final answer:** 180