
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
am. 265.

Transcribed Image Text:The economy of Captiosus produces two goods: laptops and books. The quantity produced and the prices of these items for 2010 and 2011 are shown in the table below:
| Year | Quantities produced | Price ($) |
|------|---------------------|-----------|
| 2010 | Laptops = 60 | Laptops = 200 |
| | Books = 800 | Books = ? |
| 2011 | Laptops = 80 | Laptops = 150 |
| | Books = ? | Books = 10 |
**Instructions:** Round your answer to two decimal places.
a. Let’s assume that the base year was 2010, so that real GDP in 2010 equals nominal GDP in 2010.
If the real GDP in Captiosus was $14,000 in 2010, the price of books must have been \$______.
**Instructions:** Round your answer to the nearest whole number.
b. Using your answer from part (a), if the growth rate in nominal GDP was 10 percent, ______ books must have been produced.
**Instructions:** Round your answer to one decimal place.
c. Using your answers from parts (a) and (b), the growth rate in real GDP between 2010 and 2011 was ______ percent.
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