-Suppose GDP Consists of Wheat and Rice

Multiple Choice

-Suppose GDP consists of wheat and rice. In 2006, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold at $2 per bushel. If the price of wheat was $2 per bushel and the price of rice was $1 per bushel in 2001, the base year, what can we conclude?

A) Nominal 2006 GDP is $100, real 2006 GDP is $50, and the GDP deflator is 50.
B) Nominal 2006 GDP is $100, real 2006 GDP is $50, and the GDP deflator is 200.
C) Nominal 2006 GDP is $50, real 2006 GDP is $100, and the GDP deflator is 200.
D) Nominal 2006 GDP is $40, real 2006 GDP is $100, and the GDP deflator is 50.