Suppose an Economy's Production Consists Only of Corn and Soybeans

question 18

Multiple Choice

Suppose an economy's production consists only of corn and soybeans.In 2005,20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel.In 2004,the price of corn was $2 per bushel and the price of soybeans was $1 per bushel.Using 2004 as the base year,it follows that,for 2005,

• A) nominal GDP is $50,real GDP is $100,and the GDP deflator is 50.
• B) nominal GDP is $50,real GDP is $100,and the GDP deflator is 200.
• C) nominal GDP is $100,real GDP is $50,and the GDP deflator is 50.
• D) nominal GDP is $100,real GDP is $50,and the GDP deflator is 200.

---

Definitions:

Moon Illusion

A perceptual phenomenon where the moon appears larger when it is closer to the horizon than when it is higher in the sky.

Perceived Distance

The subjective experience or estimation of how far away an object is from the observer.

Perceived Size

An individual's subjective interpretation or impression of the size of an object, which can be influenced by various visual cues and psychological factors.

Relative Motion

The calculation of the motion of an object with regard to some other moving or stationary object.