Answer: $140
Explanation:
To solve this, we need to calculate the inflation rate first. This will be:
= (Current year price - base year price) / (Base year price)
For Product X, will be:
= ($2 - $1) / $1
= 1
For Product Y, this will be:
= ($3 - $2) / $2
= $1/$2
= 0.5
For Product Z, this will be:
= ($4 - $3) / $3
= $1/$3
= 0.33
Then, the real GDP will be the Base year of all the products divided by their inflation rate. This will be:
= (10/1) + (20 / 0.5) + (30 / 0.33)
= 10 + 40 + 90
= 140
