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Bananaland Produces Only Bananas and Sunscreen and the Quantities and \text

Question 60

Multiple Choice

 Date for 2012 Data for 2013 Item  Quantity  Price  Quantity  Price  Bananas 100$2.00125$4.00 Sunscreen 60$5.0075$4.00\begin{array} { l c c c c } & { \text { Date for } \mathbf { 2 0 1 2 } } & & { \text { Data for } \mathbf { 2 0 1 3 } } \\\hline { \text { Item } } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Bananas } & 100 & \$ 2.00 & 125 & \$ 4.00 \\\text { Sunscreen } & 60 & \$ 5.00 & 75 & \$ 4.00 \\\hline\end{array}

Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above.
- Between 2012 and 2013, which grew more rapidly: Nominal GDP or real GDP?


A) Because real GDP and nominal GDP use different prices, it is not possible to determine which grew most rapidly.
B) both grew at the same rate
C) real GDP grew more rapidly
D) nominal GDP grew more rapidly
E) More information is needed to determine which grew more rapidly.

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