Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 24, Problem 4SPPA
To determine
To explain:
The events that increase potential GDP and the events that will decrease it.
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Additional Problem 3 Appendix
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An economy produces only food and fun. The table shows the quantities produced and prices in 2018 and 2019. The
base year is 2019.
In 2018
Calculate the value of 2018 production in 2019 prices and the percentage change in production when valued at 2019
prices.
Item
Quantity
Price
Food
100
$1
The value of 2018 production in 2019 prices is $
Fun
71
$3
In 2019
Item
Quantity
Price
Food
73
$6
Fun
69
$8
Enter your answer in the answer box and then click Check Answer.
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The table shows the quantities produced and prices in 2015
and 2016 for an economy which produces only food and fun.
In 2015
Item
Quantity
Price
The base year is 2016.
Food
100
$3
Calculate the value of 2015 production in 2016 prices and the
percentage change in production when valued at 2016 prices.
Fun
68
$5
In 2016
Item
Quantity
Price
Food
73
$5
The value of 2015 production in 2016 prices is $.
Fun
69
$8
The percentage change in production when valued at 2016
prices is percent.
>>> Answer to 1 decimal place.
>>> If your answer is negative, include a minus sign. If your
answer is positive, do not include a plus sign.
Next
3 Two countries A & B have completely fixed and flexible prices respectively. Consider this data
GDP A Prices A GDP B Prices B
year 1 5200 units 26 5200 units 26
year 2 there occurs a negative demand shock. A has a 30% decline in output. B has a 30% decline in prices.
Compute Real GDP in A and B in year 1 and 2. 4 answers.
Which county would experience a recession? Why?
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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