Question

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.

Answer 1

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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