AP Macroeconomics · Question of the Day

AP Macroeconomics Question of the Day

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Tuesday, August 25, 2026

To compute real GDP for Year 2 using Year 1 as the base year, one must multiply the quantities of goods and services produced in

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Question of the Day

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To compute real GDP for Year 2 using Year 1 as the base year, one must multiply the quantities of goods and services produced in

  1. Year 2 by the prices that existed in Year 1. (correct answer)
  2. Year 2 by the prices that existed in Year 2.
  3. Year 1 by the prices that existed in Year 2.
  4. Year 1 by the prices that existed in Year 1.

Explanation: The definition of real GDP is the value of current output measured at constant, base-year prices. Therefore, to calculate real GDP for Year 2, one must use the quantities from Year 2 and the prices from the base year, which is Year 1.