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In 2013, Adanac produced 25 kilos of apples and 30 kilos of bananas. Both fruits were used exclusively for final consumption and nothing else was

In 2013, Adanac produced

25

kilos of apples and

30

kilos of bananas. Both fruits were used exclusively for final consumption and nothing else was produced. In 2013, a kilo of apples sold for

$55

while a kilo of bananas sold for

$11.

In 2014, Adanac produced only

10

kilos of apples but produced

40

kilos of bananas. In 2014, prices were

$66

per kilo of apples and

$99

per kilo of bananas. Using 2013 prices, economists estimate that potential GDP is

$650

in 2014. The output gap in 2014 is

A.

minus$320.

B.

$320.

C.

$160.

D.

negative $$160.

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