Figure: Consumer and Capital Goods Consumer goods (per period) Curve 2 Curve 1 Capital goods (per period) Reference: Ref 2-4 Figure: Consumer and Capital Goods (Figure: Consumer and Capital Goods) Use Figure: Consumer and Capital Goods. Assume the economy's current production possibilities frontier is given by curve 1. Point Z:

Can you explain how they got this answer? I thought the equation was basket value year 2009 divided by basket value year 2007 X 100. That would be $5000/$1200X100=416

The data below are from the economies of Ishgandar and Nonburmia. Ishgandar         Nonburmia       Year Population GDP Deflator Nominal GDP Year Population GDP Deflator Nominal GDP 1 5 100 $200 1 10 100 $300 2 5 125 $375 2 10 110 $440 (e) Assume that in Year 1 Nonburmia is operating inside its production possibilities curve and that Nonburmia’s production possibilities curve remains unchanged from Year 1 to Year 2. As a result of the change in real GDP from Year 1 to Year 2, does Nonburmia’s economy move closer to or farther away from its production possibilities curve? Explain using numbers for real GDP and state what will happen to cyclical unemployment in the short run.

Suppose firms in Utopia produce only ice cream and chocolate candies. Consider Utopia's production information presented in the table below.   Ice cream Chocolate Candies      Year Quantity Produced (gallons) Price per gallon Quantity Produced (boxes) Price per candy box 2014 6,000,000 $10 14,000,000 $4 2015 7,000,000 $8.75 16,000,000 $4.75 2016 8,500,000 $8 20,000,000 $5.5 Nominal GDP of Utopia was the highest in __?  The real GDP of Utopia in 2016 is higher if ___ is the base year than if ____ is the base year.