(Choose 1 answer)
(17768) Suppose an economy's production consists only of corn and soybeans. In 2005, 20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel. In 2004, the price of corn was $2 per bushel and the price of soybeans was $1 per bushel. Using 2004 as the base year, it follows that, for 2005.
A. nominal GDP is $50, real GDP is $100, and the GDP deflator index is 50.
B. nominal GDP is $50, real GDP is $100, and the GDP deflator index is 200.
C. nominal GDP is $100, real GDP is $50, and the GDP deflator index is 50.
D. nominal GDP is $100, real GDP is $50, and the GDP deflator index is 200.
Exit 27
