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Suppose an Economy Produces Only Three Products, A, B, and C

Question 14

Multiple Choice

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:
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.
- 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.

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