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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Q170: Use the following to answer questions:
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Q173: Consider an economy that produces only DVDs
Q174: Chained dollars is:
A) money that banks are
Q176: Suppose that, in year 1, an economy
Q177: Use the following to answer questions:
Q178: Use the following to answer questions:
Q179: Real GDP is:
A) the value of the
Q180: Nominal GDP:
A) has not been adjusted for
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