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3. (40 Points) The country of Myrule has produced the following quantity of gauges and potatoes, with the price of each listed in dollar terms.

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3. (40 Points) The country of Myrule has produced the following quantity of gauges and potatoes, with the price of each listed in dollar terms. Year 1 Quantity 8000 6000 2 Quantity 10,000 5000 Price $4 $8 Gauges Potatoes Price $3 $14 (d) Would you say that percentage increase in nominal GDP in this economy since the base year is due more to increases in prices or increases in the physical volume of output? (10 points)

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