Assume an Economy That Is Producing Only One Product

question 219

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Units of Output } & \text { Price Per Unit } \\\hline 1 & 20 & \$ 4 \\\hline 2 & 25 & 4 \\\hline 3 & 30 & 6 \\\hline\end{array}$$ Assume an economy that is producing only one product. Output and price data for a three-year period are shown in the table. If year 2 is chosen for the base year, in year 3 nominal GDP and real
GDP, respectively, are

• A) $180 and $30.
• B) $30 and $5.
• C) $180 and $120.
• D) $120 and $100.

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Definitions:

Manager

A person in charge of managing or overseeing either a portion or the entirety of a business or comparable entity.

Ratio

A mathematical relationship that compares two numbers or quantities, indicating how much of one value exists per unit of the other.

Positive Emotions

Emotional states or feelings that are desirable and perceived as beneficial, such as happiness, joy, or love.

Joy

A feeling of great pleasure and happiness.