1. A country produces milk and butter, and it has published the followingmacroeconomic data.Year 1Year 2Quantity Price Quantity Price500GoodMilk900Butter200013000Between Year1 and Year 2, the percent change in real GDP (based on Year 1as a base year) wasA) 58%.B) 60%.C) 130%.D) 190%.

An economic growth rate is the percentage change in the value of all of the goods and services…

1. A country produces milk and butter, and it has published the following macroeconomic data. Year 1 Year 2 Quantity Price Quantity Price 900 Good Milk 500 3 Butter 2000 1 3000 Between Year1 and Year 2, the percent change in real GDP (based on Year 1 as a base year) was A) 58%.

1. A country produces milk and butter, and it has published the following macroeconomic data. Year 1 Year 2 Quantity Price Quantity Price 900 Good Milk 500 3 Butter 2000 1 3000 Between Year1 and Year 2, the percent change in real GDP (based on Year 1 as a base year) was A) 58%.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 17RQ: What are typical GDP patterns for a high-income economy like the United States in the long run and...

See similar textbooks

Related questions

Q: Oil prices doubled since January 2021, from $50 per barrel to $100 per barrel. Use a graph to show…

A: Answer: If the price of oil rises from $50 per barrel to $100 per barrel then the budget line will…

Q: The average car depreciates in value about 15% per year. Suppose you buy a silver Cherolet Cruze LTZ…

A: Given, The car value depreciates about 15% per year The depreciation rate(r) is 15% = 0.15 Now the…

Q: What can a multi-national enterprise do to minimize its exposure to political risks in its host…

A: A multinational enterprise (MNE) and at times likewise called multinational company (MNC), simply…

Q: Discuss wether a fall in a country’s exchange rate will reduce a deficit on the current account of…

A: Answer to the question is as follows:

Q: What is the real exchange rate, and how are fluctuations in the real exchange rate related to…

A: The product of the nominal exchange rate (for example, the dollar cost of a euro) and the price…

Q: QUESTION 14 Consider the market for PlayStation video games. Ceteris paribus, what effect will a…

A: Note: You have uploaded two questions at a time. Hence, we shall solve only the first one for you.…

Q: Y C Ip G Xn $0 $800 $1,000 $1,400 −$200 2,500 2,300 1,000 1,400 −200 5,000 3,800 1,000 1,400 −200…

A: Aggregate expenditure is the sum of consumption, investment, government purchases and net export.…

Q: Boeing estimates the own-price elasticity of demand for new commercial jets is –1.25. Use their…

A: The answer is given below

Q: Consider a consumption function of C = 0.75 (Y – T). a) If government spending increases by $300…

A: Government Spending refers to the use of funds by the government of a country for various welfare…

Q: In the aggregate expenditure model the investment curve is A. Upward sloping B. Downward…

A: Aggregate expenditure is the sum of consumption, investment, government purchases and net exports.…

Q: The total construction cost of a typical chemical processing system made up of three subsystems is…

A: Given, Cov (X2, X3) = 0.0937= E(X2, X3) - E(X2) E(X3) 0.0937 = E(X2 X3) - 0.1*0.1 Therefore , E(X2…

Q: Which of the following policies did the Fed follow after 2014? To unwind expansionary policy…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Explain in your words that how a nation improves productivity?

A: The comparison between the amount of goods and services produced and the quantity of inputs required…

Q: Suppose that every consumer is on his/her budget constraint where MRS = 0.1, the price of good X is…

Q: The manager of a firm in a monopolistically competitive industry is giving some thought to two…

A: Monopolistic competition basically refers to a market system in which numerous enterprises compete…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: When talking about a competitive equilibrium, it refers to the situation when the market with many…

Q: If a recession persists due to nominal wage and price stickiness (slow adjustments of nominal wages…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Required information A process for producing the mosquito repellant Deet has an initial investment…

A: Initial Investment = 200,000 Annual Cost = 43,000 Income = 90,000 per year

Q: Doctors often charge patients different amounts. What implications does this have for exchange…

A: exchange efficiency also called pareto efficiency is about how to make something better by making…

Q: 7. True or False: The certainty equivalent of a risk averse person is smaller than the expected…

A: Q7. Risk Averse is a person or investor who opt for guaranteed options rather than options in which…

Q: After graduating from college in 2010, Art Major's starting salary is $30757.00. Suppose Art Major…

A: Answer; Salary of major in 2011 = Salary in 2010 * CPI in 2011/ CPI in 2010 =…

Q: A government budget surplus is __________. Question 22 options: a situation in which the amount…

A: Government budget balance depends on how much government is giving and how much it is getting.

Q: The price of a ticket to a Taylor Swift concert is $150. According to an economist, under what…

A: According to economists, every action and decision involves marginal analysis.

Q: Draw the business cycle diagram correctly labeling the axes, expansion, peak, contraction, and…

A: The business cycle refers to the cycle representing the economy-wide fluctuations that take place in…

Q: Define the term balance of trade.

A: Trade is the exchange of goods and services in return for money.

Q: Selected members of a national organization of mathematics teachers were asked to decide on a…

A: Approval voting is a solitary electoral system where each voter may vote for any number of…

Q: Describe an innovation in technology, business, or culture that had a major economic impact in your…

A: Innovation and change have become the key components for the success and failure of any business.…

Q: Suppose a monopolist produces in two different plants and sells them in the same Suppose further…

A: Multiplant monopoly: A monopolist produces in two different plants and sells them in the same…

Q: 3. (Multiple Choice) If Ricardian Equivalence holds, what variable changes between the two…

A: Ricardian equivalence is an economic theory that claims that paying government spending with…

Q: CASE STUDY: Since becoming an independent nation in 1965, Singapore has been on the rise…

A: Globalization, is the course of connection and reconciliation among individuals, organizations, and…

Q: what are the different concepts of national income

A: There are various concepts of National Income GDP GNP NNP NI PI DI and PCI

Q: Describe the benefits of an auction to thebuyer and the seller.

A: Auction: - Auction is the process of selling a product to the highest bidder.

Q: 3. Christina loves pizza and hates burger. Her utility function is U(p – b) =p – →b´, | where p is…

Q: Provide a brief explanation on how the South African economic growth had been performing since 2000.…

A: South Africa's political transformation is regarded as one of the century's most stunning political…

Q: Question 2 Consider the AD-AS model discussed during the lectures. Assume that the aggregate demand…

A: (a) AD curve slopes negative as we can see from the function because of the wealth impact on the…

Q: Dmitri and Frances are farmers. Each one owns a 12-acre plot of land. The following table shows the…

A: The PPF is also known as the transformation curve or the production possibility curve. The…

Q: employment and the medium-run r- estion a). will upvote for good resp ! Question 2 Technology and…

A: Price setting: P = (1+m) (W/A) Wage setting: W = Ae P e (1-u) here A is the unobserved and difficult…

Q: Consider a non-competitive model with flexible prices. Now assume that a productivity shock can…

A: The percentage increase in the quantity demanded is smaller than the percentage drop in the price, a…

Q: Suppose a consumer had a utility function given by: U = XY². If the price of Good X (Px) is $6 and…

A: Suppose a consumer had a utility function given by: U = X * Y ^ 2 . If the price of Good X (Px) is…

Q: e the information in the lable to answer the folowing queslions. All numbers are in bilons of 2012…

A: Given, Real GDP Consumption Planned Investment Government purchases Net…

Q: Which of the habits refer to the mission statement? (a) Think win-win (b) Begin with the end in mind…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: One of the components of direct cost of construction projects is equipment cost where a contractor…

A: The cost of rented or owned construction equipment, as well as the costs of fuel, loading,…

Q: Consider a market demand function P=100-0.01Q. There are only two firms in the market and each…

A: When there is no first-mover, both firms act as Cournot duopoly and when there is a first mover,…

Q: In general equilibrium, when one of the firms producing goods is a monopolist, it charges price that…

A: Monopolist is teh single seller in the market of goods to large number of buyers which jarge high…

Q: Question 7: Suppose that the production possibilities curve is given by x² + y2 = 20 and that…

A: Given information Production possibility frontier X^2+Y^2=20 Utility function of Vincent= U=XvYv…

Q: The most valuable tool for understanding demographic changes in America is ________. Explain your…

A: Demographic changes means the change in population composition be it birth rate, life expectancy,…

Q: How can we conserve natural resources and sustain our environment?

A: Though natural resources are available in free but they also tend to finish.

Q: What are the principles that guide the government's antitrust policy? (Select all that apply) O A.…

A: Antitrust laws are made for preventing consumers from fraudulent business practices and ensuring…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: In long run, if price is below average total cost, it means the firm is not able to pay to its…

Q: Required information A process for producing the mosquito repellant Deet has an initial investment…

A: Initial Investment = 200,000 Annual Cost = 43,000 Income = 90,000 per year

Question

1. A country produces milk and butter, and it has published the following
macroeconomic data.
Year 1
Year 2
Quantity Price Quantity Price
500
Good
Milk
900
Butter
2000
1
3000
Between Year1 and Year 2, the percent change in real GDP (based on Year 1
as a base year) was
A) 58%.
B) 60%.
C) 130%.
D) 190%.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the Producer Price index and the GDP deflator also subject to these biases? Why or why not?
What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?
An economy produces 10 cookies in year 1 at aprice of $2 per cookie and 12 cookies in year 2 ata price of $3 per cookie. From year 1 to year 2, realGDP increases bya. 20 percent.b. 50 percent.c. 70 percent.d. 80 percent.
4. Compute the percentage increase in real GDP from 2004 to 2005.a. 0 percentb. 7 percentc. 22 percentd. 27 percent *base year is 2003
In 2019, a. what percentage of the labor force was employed? b. what percentage of the labor force was unemployed? c. what percentage of the total population was employed?
Unit 7 Practice Questions to be discussed in BBCStudents are expected to attempt the questions before attending the BBC Session.Selected questions will be discussed in the BBC Session.Question 1Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006)Year Quantity of FoodPrice of FoodQuantity of ClothingPrice of Clothing2006 20 $15 15 $52007 60 $18 30 $6Calculate nominal and real GDP in 2006 and 2007, the GDP deflator and the growth rate in real output.Question 2You have been employed as the chief economist for the economy UWI Land. The head statistician has provided you with the following…
What counts as GDP (II)? By how much does GDP rise in each of the fol-lowing scenarios? Explain. (a) A computer company buys parts from a local distributor for $1 million,assembles the parts, and sells the resulting computers for $2 million.(b) A real estate agent sells a house for $200,000 that the previous ownershad bought 10 years earlier for $100,000. Te agent earns a commissionof $6,000.(c) During a recession, the government raises unemployment benefts by$100 million.(d) A new U.S. airline purchases and imports $50 million worth of airplanesfrom the European company Airbus.
(1) Recent measurements have shown a significant deterioration in the quality of the Scottish seaside. Which of the following statements are compatible with this observation? A. The real value of GDP has increasedB. The real value of GDP remains the same C. North Sea oil wells have dried upD. The price of swimming costumes has gone down (2) The impact of Covid-19 on happiness is negative because A. it decreased economic activityB. it coincided with BrexitC. it forced social isolationD. it obliged people to develop new Information Technology skills(i) A is correct(ii) A and B are correct(iii) A and C are correct(iv) All of the above are correct
Answer these questions about GDP: a. Could next year’s real GDP exceed next year’s nominal GDP?b. Could real GDP grow at the same time that real GDP per capita falls?c. Could people’s real consumption possibilities expand at the same time that realGDP per capita falls?d. How does changing amount of leisure complicate comparisons of real well-beingover time?
Gross Domestic Product The U.S. gross domesticproduct (GDP) (in trillions of dollars) for selectedyears from 2005 and projected to 2070 can be modeled by y = 0.116x2-3.792x + 45.330, where xis the number of years after 2000. During what yearsbetween 2005 and 2070 was the gross domestic product no more than $23.03 trillion?
a. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts a year. The average T‑shirt begins life when a farmer plants seeds she put away last year, waters them, and harvests the cotton, then sells the cotton to a mill for $0.75, which sells the fabric to a T‑shirt factory for $1.50, which sells its T‑shirts to a wholesaler for $5, who sells it to Nordstrom for $10, which finally sells it to you for $17. Determine the impact of T‑shirts on annual GDP by calculating the value added of the entire production process. b. Now, calculate the amount spent on T‑shirts in a year if 100 million T‑shirts are sold, each for $17. How does this compare to the amount calculated through the value‑added method?
Cosider the following data on U.S GDP:a.What was the growth rate of nominal GDP between 1994 to 2014?b.What was the growth rate of the GDPdeflator between 1994 to 2014?c.What was the real GDP in 1994 measured in 2009 prices?d.What was the real GDP in 2014measured in 2009 prices?e.What was the growth rate of the GDP between 1994 to 2014?f.Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP?Explain.