The Table Below Indicates the Price and Output Data Over

question 158

Multiple Choice

The table below indicates the price and output data over a five-year period for an economy that produces only one good. Refer to the above data.If year 2 is the base year, real GDP in year 5 is:

• A)$120
• B)$90
• C)$60
• D)$30

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Definitions:

Equal Monthly Payments

Regular payments of the same amount made over a set period to repay a loan or mortgage.

Compounded Monthly

Compounded Monthly implies that interest is added to the principal sum of a deposit or loan each month and interest in the following month is then earned on the new principal sum.

Monthly Payments

Regular payments made every month, typically used in the context of loans, mortgages, or other installment plans.

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, leading to interest on interest.