Suppose That, in Year 1, an Economy Produces 100 Golf

Multiple Choice

Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. Using year 1 as the base year, real GDP in year 2 is:

A) $900.
B) $970.
C) $1,000.
D) $1,077.50.