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:
A. increased both nominal and real GDP from last year.
B. increased nominal GDP from last year, but real GDP was unaffected.
C. increased real GDP from last year, but nominal GDP was unaffected.
D. did not change either nominal or real GDP from last year.
Answer: B
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a. True b. False
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Indicate whether the statement is true or false
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A. equals zero. B. depends on the supply and demand of land. C. exceeds the opportunity cost of the land. D. is always greater than the equilibrium rent for nonmarginal land.