An Economy Produces Only Eggs and Ham

Multiple Choice

An economy produces only eggs and ham. Last year, it produced 100 units of eggs at $3 each and 50 units of ham at $4 each. If in the base year eggs sold for $1.50 per unit and ham sold for $5 per unit, what can we conclude?

A) Nominal GDP is $500, real GDP is $400, and the GDP deflator is 80.
B) Nominal GDP is $500, real GDP is $400 and the GDP deflator is 125.
C) Nominal GDP is $400, real GDP is $500, and the GDP deflator is 80.
D) Nominal GDP is $400, real GDP is $500, and the GDP deflator is 125.