Question

Consider the table below for the economy of a nation whose residents produce five final goods.

Short answer

The real GDP is $\$2,229$.

Step-by-step solution

Step 1:     Explanation of option a

The gross domestic product (GDP) is the total worth of all products and services generated within a country's borders.

a. The present price value of all commodities and services is known as nominal GDP. The calculation of nominal GDP for the years $2013$and $2017$is shown in the table below:

    Explanation of option b

b. Nominal GDP is adjusted for inflation to produce real GDP. The fluctuation in price from one year to the next is referred to as inflation. If the base year is $2013$, the pricing in $2017$will be the same as it $2013$

The real GDP is$\$2,229$