Assume an Economy Which Is Producing Only One Product

question 36

Multiple Choice

Assume an economy which is producing only one product.Output and price data for a three-year period are as follows. Refer to the above data.If year 2 is chosen as the base year, real GDP for year 1 is:

• A)$25
• B)$100
• C)$50
• D)$80

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Definitions:

Separate Investments

Distinct individual investments held within a portfolio, rather than combined or aggregated holdings.

One-time Deposit

A single, initial deposit of funds into an account or investment, rather than multiple or recurring deposits.

Simple Interest

Interest calculated only on the initial amount of money (principal), not on the accumulated interest.

Annually Compounded

Interest on an investment that is calculated once per year, adding the interest earned to the principal amount for future interest calculations.