TABLE 7-1 Calculating GDP and Real GDP in a Simple Economy
Year 1
Year 2
Quantity of apples (billions)
2,000
2,200
Price of apple
$0.25
$0.30
Quantity of oranges (billions)
1,000
1,200
Price of orange
$0.50
$0.70
GDP (billions of dollars)
$1,000
$1,500
Real GDP (billions of year 1 dollars)
$1,150