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Suppose GDP Consists of Wheat and Rice

Question 28

Multiple Choice

Suppose GDP consists of wheat and rice.In 2011, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at $2 per kg.If in 2012, the base year, the price of wheat was $1 per kg and the price of rice was $2 per kg, then for year 2011:


A) nominal GDP is $100
B) nominal GDP is $400
C) nominal GDP is $4000
D) nominal GDP is $1000

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