Multiple Choice
In the country of Mainia, GDP consists of cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit, and 100 units of maple syrup are sold at $10 per unit. If the price of cranberries was $10 per unit and the price of maple syrup was $15.00 per unit in the base year, what can we conclude?
A) Nominal GDP is $2500, real GDP is $2000, and the GDP deflator is 83.3.
B) Nominal GDP is $2000, real GDP is $2500, and the GDP deflator is 125.
C) Nominal GDP is $2000, real GDP is $2000, and the GDP deflator is 100.
D) Nominal GDP is 2500, real GDP is 2500, and the GDP deflator is 100.
Correct Answer:
Verified
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