Suppose an Economy Produces Only Cranberries and Maple Syrup

question 207

Multiple Choice

Suppose an economy produces only cranberries and maple syrup.In 2006,50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit.In 2005,the base year,the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit.For 2006,

• 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:

Empathy

The capacity to understand or feel what another person is experiencing from within their frame of reference.

Sisu

A Finnish concept referring to a unique form of resilience or courage in the face of adversity.

Mental

Relating to processes of the mind or intellectual activities.

Physical Ability

The capacity to perform physical tasks or activities, including strength, flexibility, and endurance.