Suppose an economy’s production consists only of corn and soybeans. In 2025, 20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel. In 2024, the price of corn was $2 per bushel and the price of soybeans was $1 per bushel. Using 2024 as the base year, it follows that, for 2025,

Question

Suppose an economy’s production consists only of corn and soybeans.  In 2025, 20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel.  In 2024, the price of corn was $2 per bushel and the price of soybeans was $1 per bushel.  Using 2024 as the base year, it follows that, for 2025,

Answer

nominal  GDP  is $50, real  GDP  is $100, and the  GDP  deflator is 50.

Answer

nominal  GDP  is $50, real  GDP  is $100, and the  GDP  deflator is 200.

Answer

nominal  GDP  is $100, real  GDP  is $50, and the  GDP  deflator is 200.

Answer

nominal  GDP  is $100, real  GDP  is $50, and the  GDP  deflator is 50.

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Suppose an economy’s production consists only of corn and soybeans. In 2025, 20...

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