In 2015, Adanac produced 20 kilos of apples and 30 kilos of bananas. Both fruits were used exclusively for final consumption and nothing else was produced. In 2015, a kilo of apples sold for $5 while a kilo of bananas sold for $10. Using the same prices, economists estimate that potential GDP is $200. The output gap is
A) + $200.
B) + $400.
C) - $100.
D) + $100.
E) - $200.
Correct Answer:
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