Suppose a Small Economy Produces Only Smart TVs

Multiple Choice

Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a price of $1,200 each. In year two, 100,000 TVs are produced and sold at a price of $1,000
Each. As a result,

A) nominal GDP stays constant, while real GDP decreases.
B) nominal GDP decreases, while real GDP stays constant.
C) nominal GDP and real GDP both decrease.
D) nominal GDP decreases, and real GDP decreases even more.