If there are 5 quarts of ice cream worth 4$ each, 2 bottles of shampoo worth 3$ each, and 2 jars of peanut butter worth 2$ each. What would the real GDP values of each product be?

Answer 1

The question is asking about Real GDP, but this problem doesn't tell you anything about inflation. So you can't find Real GDP without that missing information about inflation. However you could find the GDP value for each of the products by just looking at the price of each of the products. 4$ for Ice Cream, 3$ for Shampoo and 2$ for peanut butter. If this was all the products sold in a hypothetical economy, then you could find the total GDP by taking the quantity sold multiplied by the price. In the hypothetical economy if all these products were sold the GDP would be (5x4$)+(2x3$)+(2x2$)=30$