Assume an economy that is producing only one product. Output and price data for a three-year period are as follows. Answer the question on the basis of these data. year units of output price per unit 1 20 4 2 25 4 3 30 6

Refer to the above data. If year 2 is chosen for the base year, in year 3 nominal GDP and real GDP, respectively, are:
a) $180 and $30.
b) $30 and $5.
c) $120 and $100.
d)  $180 and $120.

ANSWER:

d)  $180 and $120.