Consider an Economy That Produces Only DVDs and DVD Players

Multiple Choice

Consider an economy that produces only DVDs and DVD players. Last year, 10 DVDs were sold at $20 each and 5 DVD players were sold at $100 each, while this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each. Real GDP this year using last year as the base year is:

A) $100.
B) $700.
C) $1,300.
D) $300