Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 23, Problem 6MCQ
To determine

To identify:

The option that correctly states the percentage rise in real GDP.

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20. During a presidential campaign, the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during his 4-year term in office. You know that population grew by 4 percent over the period and that the GDP deflator increased by 6 percent during the past 4 years. You should conclude that real GDP per person a. grew by more than 12 percent. b. grew, but by less than 12 percent. c. was unchanged. d. decreased.
Below are some data from the land of milk and honey:Year Price of MilkQuantity of Milk (Quarts)Price of HoneyQuantity of Honey (Quarts)2007 $1 100 $2 502008 $1 200 $2 1002009 $2 200 $4 100Using 2009 as the base year:d. Compute the growth in nominal GDP. e. Compute the growth in real GDP.f. Did economic well-being rise more in 2008 or 2009? Explain
1 a. US GDP was 14,419 billion in 2009 and 14,964 billion in 2010. What was the percentage increase in GDP over this period? Show your work
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