Harry's Pizza Parlor Produced 10,000 Large Pizzas Last Year That

question 64

Multiple Choice

Harry's Pizza Parlor produced 10,000 large pizzas last year that sold for $10 each.This year Harry's produced 11,000 large pizzas (identical to last year's pizzas) but sold them for $12 each.Based on this information, we can conclude that Harry's production of large pizzas

• A)increased nominal GDP from last year, but real GDP was unaffected.
• B)increased both nominal and real GDP from last year.
• C)increased real GDP from last year, but nominal GDP was unaffected.
• D)did not change either nominal or real GDP from last year.

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Definitions:

Operating Profit

Earnings before interest and taxes (EBIT), reflecting the profit a company makes from its operations, before financial and other non-operational costs.

Reduced Price

A lower cost for goods or services, typically offered during sales, discounts, or promotions.

Reduced Price

Reduced price indicates a discount or decrease in the original selling price of goods or services, often to clear inventory or during sales promotions.

Factory

A building or group of buildings where goods are manufactured or assembled chiefly by machine.