Question 1:

Consider an economy that produced 100 bottles of beer and 100 pounds of beans in 1980. In that year beer sold for $2 per bottle and beans for $1 per pound. In 1990 the economy produced 120 bottles of beer and 200 pounds of beans. The prices were $5 for beer and $2 for beans. In 1990, nominal output, real output in 1980 dollars and the implicit output deflator are, respectively

1. $320, $200 and 160.

2. $320, $200 and 1.60.

3. $1000, $440 and 227.3.

4. $1000, $440 and 2.273.

Choose the correct answer.