Assume that in year 1 an economy produces 1000 units of output and they sell for $100 a unit, on average. in year 2, the economy produces the same 1000 units of output, and sells it for $110 a unit, on average. use year 1 prices to calculate real gdp in year 1 and year 2. what happened to real gdp between years 1 and 2? why?

The real GDP in year 1 (quantities in year 1 times prices in year 1) is equal to$100,000.The real GDP in year 2 is calculated by multiplying the output produced in this specific year times the prices at which the products sold on average in year 1.The real GDP in year 2 is also equal to $100,000.Although prices increased from $100 in year 1 to $110 in year 2, the total amount of output produced did not change and real GDP should be equal for these two years

Ithink the answer is b

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