Use the Table Below to Answer the Following Question

question 71

Multiple Choice

Use the table below to answer the following question.
Table 20.4.4

-Refer to Table 20.4.4. The table provides data on the economy of Tropical Republic that produces only bananas and coconuts. The chained-dollar real GDP in 2014 expressed in 2013 dollars is

• A)$7,472.50
• B)$7,500.00
• C)$1.575.50
• D)$7, 575.00

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Definitions:

Base Year

A specific year against which economic growth is measured, serving as a benchmark for real value comparisons over time.

Price Indexes

Price indexes are statistical measures that reflect the average change in prices over time of a basket of goods and services, used to gauge inflation or deflation in an economy.

Nominal GDP

The total value, in current market prices, of all the final goods and services generated within a country's borders over a certain time period.

Real GDP

Real GDP, which adjusts for price changes to offer a true measure of an economy's overall size and its growth trajectory.