Harry\'s Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year

Question

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:
Question 4 options:
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 unchan

Explanation / Answer

increases by 10000*(12-10)=20000 so option c

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