Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each.This year Harry's again produced 10,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $12 each.Based on this information, we can conclude that Harry's production of large pepperoni pizzas
A)increased both nominal and real GDP from last year.
B)increased nominal GDP from last year, but real GDP was unaffected.
C)increased real GDP from last year, but nominal GDP was unaffected.
D)did not change either nominal or real GDP from last year.

Question

Quizplus · Accepted Answer

Nominal GDP increased because the price per pizza increased from $10 to $12, but real GDP remained unaffected as the quantity of pizzas produced did not change.

Harry's Pepperoni Pizza Parlor Produced 10,000 Large Pepperoni Pizzas Last