Multiple Choice
Suppose that in 2010 Canada's automobile manufacturers produced 2 million cars priced at $20 000 each. And in 2011 they produced 1 million cars priced at $40 000 each. Ceteris paribus, the change in nominal national income is
A) an increase because the price of each car increased.
B) a decrease because fewer cars were produced.
C) insufficient information to know.
D) no change in nominal national income.
E) an increase because of inflation.
Correct Answer:
Verified
Correct Answer:
Verified
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