Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital good are $20 billion, $40 billion, and $30 billion, respectively. The Macroeconomy PPF2 PPF, b Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point b over a 5-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point cat the end of the 5-year period, by what percentage did it fall short of its production сарacity? percent Capital goods

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: An Introduction To Basic Macroeconomic Markets
Section: Chapter Questions
Problem 13CQ
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Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital goods)
are $20 billion, $40 billion, and $30 billion, respectively.
The Macroeconomy
PPF2
PPF1
b
Consumer goods
Instructions: Enter your answers as a whole number.
a. If the economy moves from point a to point b over a 5-year period, what must have been its annual rate of economic growth?
percent
b. If, instead, the economy was at point c at the end of the 5-year period, by what percentage did it fall short of its production
сарacity?
percent
Capital goods
Transcribed Image Text:Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital goods) are $20 billion, $40 billion, and $30 billion, respectively. The Macroeconomy PPF2 PPF1 b Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point b over a 5-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point c at the end of the 5-year period, by what percentage did it fall short of its production сарacity? percent Capital goods
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