An increase in nominal GDP implies that the country is producing a greater quantity of goods and services

Refer to Figure 15-5. In the figure above, the movement from point A to point B in the money market would be caused by

A) a decrease in real GDP. B) an open market sale of Treasury securities by the Federal Reserve. C) an increase in the required reserve ratio by the Federal Reserve. D) an increase in the price level.

Suppose an economy's entire output is cars. In Year 1, all manufacturers produce cars at $15,000 each; the real GDP is $300,000. In Year 2, 20 cars are produced at $16,000 each. What is the real GDP in Year 2?

(A) $280,000 (B) $20,000 (C) $320,000 (D) $300,000