Suppose an Economy Produces Only Wheat and Rice

Multiple Choice

Suppose an economy produces only wheat and rice.Last year,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 the base year,what can we conclude?

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