Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. In 2013, which is larger, nominal GDP or real GDP?

A) Both are the same size.
B) Nominal GDP is larger.
C) Real GDP is larger.
D) The answer is ambiguous.
E) More information is needed to determine which is larger.

B

Economics

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Indicate whether the statement is true or false

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When actual output increases the potential output, _____. a. more resources become unemployed. b. prices remain constant

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