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(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies A)1125%; 0

Question 118

Multiple Choice

(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth of nominal GDP from 2018 to 2019 was due to an approximately _____ increase in prices and an approximately _____ increase in aggregate output.  2018 Output  2018 Prices  2019 Output  2019 Prices  Lemonade  200 glasses  $1 per glass 220 glasses  $1 per glass  Cookies 100 cookies  $2 per cookie 100 cookies  $2.25 per cookie \begin{array} { | l | l | l | l | l | } \hline & \text { 2018 Output } & \text { 2018 Prices } & \text { 2019 Output } & \text { 2019 Prices } \\\hline \text { Lemonade } & \text { 200 glasses } & \text { \$1 per glass } & 220 \text { glasses } & \text { \$1 per glass } \\\hline \text { Cookies } & 100 \text { cookies } & \text { \$2 per cookie } & 100 \text { cookies } & \text { \$2.25 per cookie } \\\hline\end{array}


A) 11.25%; 0%.
B) 11.25%; 0%
C) 0%; 45%.
D) 0%; 45%
E) 5%; 11.25%.
F) 5%; 11.25%
G) 6.25%; 5%
H) 6.25%; 5%.

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