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:

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Variety

The quality or state of being different or diverse; the absence of uniformity or monotony.

Chocolate Bar

A confectionery product consisting primarily of chocolate, which may also contain other ingredients like nuts, fruits, or caramel.