Suppose Smith Pays $100 to Jones

Multiple Choice

Suppose Smith pays $100 to Jones.

A) We can say with certainty that the GDP has increased by $100.
B) We can say with certainty that the GDP has increased, but we cannot determine the amount.
C) We can say with certainty that the nominal GDP has increased, but we can't say whether real GDP has increased or decreased.
D) We need more information to determine whether GDP has changed.