Question

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In 2019, 200 KGs of oranges are produced at Rs.40/kg, 500 KGs of apples are produced at 120/kg, and 200 Glasses of orange juice are produced at Rs.150/glass.

In 2020, 220 KGs of oranges are produced at Rs.50/kg, 450 KGs of apples are produced at 140/kg, and 230 glasses of orange juice are produced at Rs.135/glass.

Assuming 2019 is the base year; calculate the nominal GDP in 2019

Answer 1

Nominal GDP = Sum of (this year prices x this year quantities)

Nominal GDP 2019:

Oranges $= 40 \times × 200 = 8,000$

Apples $= 120 \times × 500 = 60,000$

Orange juice $= 200 \times × 150 = 30,000$

Total $= 8,000 + 60,000 + 30,000 = 98,000$

$Nominal\space GDP\space 2019 = 98,000$