Suppose an Economy Produces Only Cranberries and Maple Syrup

question 46

Multiple Choice

Suppose an economy produces only 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 $8 per unit.In 2009,the base year,the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit.For 2010,

• A)nominal GDP is $1800,real GDP is $2000,and the GDP deflator is 90.
• B)nominal GDP is $1800,real GDP is $2000,and the GDP deflator is 111.1.
• C)nominal GDP is $2000,real GDP is $1800,and the GDP deflator is 90.
• D)nominal GDP is $2000,real GDP is $1800,and the GDP deflator is 111.1.

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Definitions:

Threeness

The quality or condition of being three or having three components.

Twoness

Twoness describes a state or condition of being divided or having a dual nature, often relating to identity or perspectives.

Subtraction

The mathematical process of taking one quantity away from another, or the removal of elements from a set.

Object Permanence

The conviction that an object exists even when it is out of sight. Piaget believed infants didn’t develop this level of understanding until the age of at least eight months.