Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 24, Problem 1MCQ
To determine
To identify:
The option which correctly states about the U.S. potential GDP.
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Students have asked these similar questions
A country produces only sugar and wheat in the quantities and prices listed below. The GDP deflator is given by Nominal GDP/Real GDP *100.
If 2018 is the base year,
i. What is the GDP deflator for years 2019 and 2020? Show your workings
ii. What is the inflation rate year 2019-2020? Show your workings
Year
Price of sugar
Quantity of sugar
Price of wheat
Quantity of wheat
2018
$2.00
200
$10
40
2019
$2.30
250
$14
50
2020
$2.75
280
$18
80
Year 2019
Product Quantity
Apples 10
Bananas 17
Your Answer:
Average Price
per Unit
Answer
$5
$20
'
Year 2020
Quantity
6
7
Average Price
per Unit
Using year 2020 as the base year, the economy's consumer price index (CPI) in
year 2019 is
(Your answer should include the first decimal point, if any.)
$16
$24
a) Explain how real interest rate affects net exports
b) A friend from the U.S. visited Ghana and exclaimed that cost of living for visitors to
Ghana is much cheaper now than it was 2 years ago. According to your friend, 2 years
ago, a dollar was equivalent to 5 cedis. Today, a dollar buys 7.5 cedis.
Is your friend right or wrong, if inflation over the 2-year period is 25 percent in the
U.S. and 100 percent in Ghana?
Chapter 24 Solutions
Foundations of Economics (8th Edition)
Ch. 24 - Prob. 1SPPACh. 24 - Prob. 2SPPACh. 24 - Prob. 3SPPACh. 24 - Prob. 4SPPACh. 24 - Prob. 5SPPACh. 24 - Prob. 6SPPACh. 24 - Prob. 7SPPACh. 24 - Prob. 8SPPACh. 24 - Prob. 9SPPACh. 24 - Prob. 10SPPA
Ch. 24 - Prob. 11SPPACh. 24 - Prob. 1IAPACh. 24 - Prob. 2IAPACh. 24 - Prob. 3IAPACh. 24 - Prob. 4IAPACh. 24 - Prob. 5IAPACh. 24 - Prob. 6IAPACh. 24 - Prob. 7IAPACh. 24 - Prob. 8IAPACh. 24 - Prob. 9IAPACh. 24 - Prob. 1MCQCh. 24 - Prob. 2MCQCh. 24 - Prob. 3MCQCh. 24 - Prob. 4MCQCh. 24 - Prob. 5MCQCh. 24 - Prob. 6MCQCh. 24 - Prob. 7MCQCh. 24 - Prob. 8MCQ
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