Bananaland Produces Only Bananas and Sunscreen and the Quantities and \text

question 29

Multiple Choice

$\begin{array} { l c c c c } & { \text { Date for } \mathbf { 2 0 1 2 } } & & { \text { Data for } \mathbf { 2 0 1 3 } } \\\hline { \text { Item } } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Bananas } & 100 & \$ 2.00 & 125 & \$ 4.00 \\\text { Sunscreen } & 60 & \$ 5.00 & 75 & \$ 4.00 \\\hline\end{array}$

Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.
-The base year is 2012. In 2013, which is larger: Nominal GDP or real GDP?

• A)real GDP is larger
• B)both are the same size
• C)the answer is ambiguous
• D)nominal GDP is larger
• E)More information is needed to determine which is larger.

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