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

question 9

Multiple Choice

Suppose an economy's production consists only of corn and soybeans.In 2010,20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel.In 2009,the price of corn was $2 per bushel and the price of soybeans was $1 per bushel.Using 2009 as the base year,it follows that,for 2010,

• 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.

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Definitions:

Kinesthesis

The sense that detects body position, weight, or movement of the muscles, tendons, and joints.

Body Parts

Physical components of an organism's body, such as limbs, organs, and tissues, each serving specific functions vital to the health and survival of the organism.

Audition

The sense of hearing; the process by which sound waves are translated by the auditory system into electrical signals the brain interprets as sound.

Sound Waves

Sounds that move through air or another substance and become audible when they arrive at the ear of a person or animal.