Suppose an economy produces two products: meat pies and MP3s. In 2011, 20 meat pies are sold at $5 each, and eight MP3s are sold at $50 each.

Suppose an economy produces two products: meat pies and MP3s. In 2011, 20 meat pies are sold at $5 each, and eight MP3s are sold at $50 each. In 2010, the base year, the price of meat pies was $10 each, and the price of MP3s was $75 each. Therefore: A.  the real 2011 GDP is $800, and the GDP deflator is 62.5

 B.  the real 2011 GDP is $800, and the GDP deflator is 160

 C.  the real 2011 GDP is $500, and the GDP deflator is 62.5

 D.  the real 2011 GDP is $500, and the GDP deflator is 160