Table 11.1 Calculating GDP and Real GDP in a Simple Economy

Year 1Year 2
Quantity of apples (billions) 2,0002,200
Price of an apple$0.25$0.30
Quantity of oranges (billions) 1,0001,200
Price of an orange$0.50$0.70
GDP (billions of dollars) $1,000$1,500
Real GDP (billions of year 1 dollars) $1,000$1,150