Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's again produced 10,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $12 each. Based on this
information we can conclude that Harry's production of large pepperoni pizzas this year:
A. increased nominal GDP by $20,000 but left real GDP unchanged.
B. increased nominal GDP by $120,000 and increased real GDP by $100,000.
C. left nominal GDP unchanged but increased real GDP by $20,000.
D. increased nominal GDP by $120,000 but left real GDP unchanged.
Answer: A
Economics
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