10. Introducing Economic Concepts
Introducing Concepts - Nominal GDP and Real GDP
Multiple Choice
Multiple ChoiceSimpletown produces Apples and Robots. In Year 1, Simpletown harvested 1,000 apples and built 50 robots. During Year 2, Simpletown had identical production to Year 1. However, during Year 2, prices rose by 50%. Based on this information, which of the following is true?
A
Simpletown's real GDP was higher in Year 2
B
Simpletown's real GDP was lower in Year 2
C
Simpletown's nominal GDP was higher in Year 1
D
Simpletown's nominal GDP was lower in Year 1
E
Both (a) and (d) are true
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