Assume an economy which is producing only one product.Output and price data for a three-year period are as follows.

-Refer to the above data.The nominal GDP for year 3 is:
A) 125 percent higher than the nominal GDP for year 1.
B) 50 percent higher than the nominal GDP for year 1.
C) 120
D) 30

Question

Assume an economy which is producing only one product.Output and price data for a three-year period are as follows.
 
-Refer to the above data.The nominal GDP for year 3 is:
A) 125 percent higher than the nominal GDP for year 1. 
B) 50 percent higher than the nominal GDP for year 1. 
C) 120 
D) 30

Quizplus · Accepted Answer

The nominal GDP for year 3 is 125% higher than the nominal GDP for year 1 because the nominal GDP for year 3 is 120 and the nominal GDP for year 1 is 100.

Assume an Economy Which Is Producing Only One Product