Suppose that in a national economy only two goods are produced: X, Y. Their quantities and prices are known in two consecutive years (T0 - base year). One of the following statements is correct: a) The nominal GDP index is subunit; b) The real GDP index is higher than the nominal GDP index; c) The Real GDP Index is equal to the GDP Deflator; d) Real GDP decreased in Q1 relative to Q0.

Why is b) the correct answer?

Px Qx Py Qy To 7 5 2 5 T1 3 4 10