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Suppose That, in Year 1, an Economy Produces 100 Golf

Question 175

Multiple Choice

Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. The value of nominal GDP in years 1 and 2, respectively, is:


A) $900 and $1,077.50.
B) $900 and $990.
C) $180,000 and $257,400.
D) $1,000 and $1,005.

Correct Answer:

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