4. Imagine that a country produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the three goods are listed below. Goods Apples Bananas Carrots Quantities Produced 5 10 20 Price $ 2.00 1.00 1.50 a. What is this country's GDP? b. Suppose that a drought hits this country, causing the quantity of apples produced to fall to 2 apples. Assuming all prices remain constant, what is the country's new GDP?

4. Imagine that a country produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the three goods are listed below. Goods Apples Bananas Carrots Quantities Produced 5 10 20 Price $ 2.00 1.00 1.50 a. What is this country's GDP? b. Suppose that a drought hits this country, causing the quantity of apples produced to fall to 2 apples. Assuming all prices remain constant, what is the country's new GDP?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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