Suppose that the country of samiam produces only eggs and ham. in 2005 it produced 100 dozen eggs at $3 per dozen and 50 pounds of ham at $4 per pound. in 2004, the base year, eggs sold for $1.50 per dozen and ham sold for $5 per pound. for 2005,

a. nominal gdp is $400, real gdp is $400, and the gdp deflator is 100.
b. nominal gdp is $500, real gdp is $400, and the gdp deflator is 80.
c. nominal gdp is $400, real gdp is $500, and the gdp deflator is 125.
d. nominal gdp is $500, real gdp is $400, and the gdp deflator is 125.

d. nominal GDP is $500, real GDP is $400, and the GDP deflator is 125.

Explanation:

Real GDP is total output produced in an economy within a given period multiplied by base year prices

Nominal GDP is the sum of all final goods and services produced in an economy within a given period multiplied by current year prices.

Nominal GDP = (100 × $3) + (50 × $4) =

$500

Real GDP = (100 × 1.5) + (50 × $5) = $400

GDP deflator = (nominal gdp / real gdp) x 100

(500 / 400) × 100 = 125

I hope my answer helps you

the correct option is c

answer; only identify and interpret trends in the marketplace;