contestada

Suppose the country of Altaria only produces one good, pink tutus. Last year, nominal GDP was $50,000 and this year it is $200,000. What can we definitively conclude?
A. Output in Altaria quadrupled
B. The rate of unemployment decreased
C. Standard of living in Altaria increased
D. All of the above.
E. None of the above.

Respuesta :

Karabo99

Answer:

E. None of the above

Explanation:

because the price level is not known, we can not tell definitely that the output is increased or unemployment is decreased or standard of living is increased .

Therefore, we cannot conclude on anything.

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Parrain

Based on the nominal GDP changes in Alteria over the years, we can conclude E. None of the above.

We cannot conclude that output increased by fourfold because we do not know the real GDP and the nominal GDP could simply have changed because of inflation.

We also cannot get information on the standard of living or unemployment rate from the nominal GDP.

In conclusion, the best option is D.

Find out more on nominal GDP at https://brainly.com/question/6348208.

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