Suppose an economy produces only three products, A, B, and C. Quantity purchased and changes in the prices of these items over a period are shown below:
- Using year 1 as a base, the value of the country's nominal GDP in year 2 is:
A) the same as nominal GDP in year 1.
B) $850, assuming no change in quantity from year 1 to year 2.
C) $3,270 assuming no change in quantity from year 1 to year 2.
D) $800 assuming no change in quantity from year 1 to year 2.
Correct Answer:
Verified
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