Consider a Small Country Producing Only Two Commodities (Coffee Beans

question 61

Multiple Choice

Consider a small country producing only two commodities (coffee beans and corn) . Following are the price and output of these two commodities in the year 2008: Assuming that the output of these two commodities remains constant, while the price of each rises by 10 percent in 2009, compute the value of real GDP in 2009.
Price
Quantity
$12
500 lbs. of coffee beans
$6
600 bushels of corn

• A) $12,000
• B) $10,560
• C) $9,600
• D) $8,400
• E) $6,560