Consider a Small Country Producing Only Two Commodities (Coffee Beans

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:
$\begin{array}{|l|l|}\hline \text { Price } & \text { Quantity } \\\hline \$ 12 & 500 \mathrm{lbs} \text {. of coffee beans } \\\hline \$ 6 & 600 \text { bushels of corn } \\\hline\end{array}$
Assuming the price level in the economy remains same while the output of both these products increase by 10 percent in 2009, calculate the value of real GDP in this country for the year 2009?

A) $9,600
B) $10,560
C) $1,056
D) $6,900
E) $10, 960

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free