If the price of pizza is $10 this year and $15 next year, then 200 pizzas would contribute
A)$2,000 to this year's GDP and $2,000 to next year's nominal GDP.
B)$3,000 to this year's nominal GDP and $3,000 to next year's nominal GDP.
C)$2,000 to this year's nominal GDP and $3,000 to next year's nominal GDP.
D)$3,000 to this year's GDP and $2,000 to next year's GDP.

Question

Quizplus · Accepted Answer

Nominal GDP counts the current market value of all final goods and services produced within a country's borders during a given period of time. Therefore, the current year's nominal GDP will be $2,000 for the 200 pizzas produced ($10 per pizza x 200 pizzas). Next year's nominal GDP will be calculated with the price of $15 per pizza, meaning the 200 pizzas will contribute $3,000 to next year's nominal GDP.

If the Price of Pizza Is $10 This Year and $15