Suppose an Economy Produces Only Solar Panels and Wind Turbines

Multiple Choice

Suppose an economy produces only solar panels and wind turbines. Last year, 20 solar panels were sold at $400 per panel and 10 wind turbines were sold at $2000 per turbine. If the price of solar panels was $200 per panel and the price of wind turbines was $1000 per turbine in the base year, what can we conclude?

A) Nominal GDP is $28 000, real GDP is $14 000, and the GDP deflator is 50.
B) Nominal GDP is $28 000, real GDP is $14 000, and the GDP deflator is 200.
C) Nominal GDP is $14 000, real GDP is $28 000, and the GDP deflator is 200.
D) Nominal GDP is $14 000, real GDP is $28 000, and the GDP deflator is 50.