Suppose that in 2016 Canada's automobile manufacturers produced 2 million cars priced at $20 000 each. And in 2017 produced 1 million cars priced at $40 000 each. Ceteris paribus, the change in nominal national income is

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Chapter8: Economic Fluctuations, Unemployment, And Inflation
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Suppose that in 2016 Canada's automobile manufacturers produced 2 million cars priced at $20 000 each. And in 2017 they
produced 1 million cars priced at $40 000 each. Ceteris paribus, the change in nominal national income is
O A a decrease because fewer cars were produced.
O
B insufficient information to know.
O C no change in nominal national income.
O
an increase because of inflation.
Transcribed Image Text:Suppose that in 2016 Canada's automobile manufacturers produced 2 million cars priced at $20 000 each. And in 2017 they produced 1 million cars priced at $40 000 each. Ceteris paribus, the change in nominal national income is O A a decrease because fewer cars were produced. O B insufficient information to know. O C no change in nominal national income. O an increase because of inflation.
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