The GDP in the Economy of Ponziland Was $5 Billion

Multiple Choice

The GDP in the economy of Ponziland was $5 billion in the year prior to the frauds (Year 1) . The economy was growing at 4 percent. Frauds during the year reduce aggregate income by $200 million. During the year, the economy has:

A) shrunk by 1 percent.
B) grown by only 1 percent.
C) remained flat.
D) grown by 4 percent.