Question
Asked Feb 22, 2019
1806 views

 

2013 Output

2013 Prices

2014 Output

2014 Prices

Lemonade

200 glasses

$1 per glass

220 glasses

$1 per glass

Cookies

100 cookies

$2 per cookie

100 cookies

$2.25 per cookie

 

 

 

29.

(Table: Lemonade and Cookies) The table Lemonade and Cookies shows the output levels and prices for lemonade and cookies. Assume that an economy produces only two goods, lemonade and cookies. Assuming that 2014 was the base year, the growth rate of real GDP from 2013 to 2014 was:

 

A)

11.25%.

 

B)

–5%.

 

C)

20%.

 

D)

4.7%.

check_circle

Expert Answer

Step 1

29.

Real GDP:

2013 real GDP can be calculated as follows:

fullscreen
Step 2

 

2014 Real GDP:

2014 real GDP can be calculated as follows:

fullscreen
Step 3

Growth rate of Real GDP:

Growth rate of Real GDP ca...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: PepsiPepsi and CokeCoke are considered to be substitutesubstitute goods.Use the line drawing tool to...

A: Substitute goods are the goods that can be used in place of each other. For example, Linux and Windo...

question_answer

Q: 1.Which of the following is not helpful in making something a good money?   Make it from somethi...

A: From the question, the options we have area. Make it from  something everyone values, like gold.b. W...

question_answer

Q: **** I need help with question 4/5/6****   Nicholas Coffee roasts coffee the old-fashioned way (in g...

A: 4. Breakeven price can be calculated as follows:

question_answer

Q: A generalization of the fisher effect that can be applied to other variables is the relationship bet...

A: It is given that,According to the fisher’s effect, the real price growth is equal to the difference ...

question_answer

Q: explain IET(International Economic Transactions) cycles as a factor modifying the limits of state re...

A: STEP 1In economics, the term IET (International Economic Transactions) refers to the transfer of com...

question_answer

Q: The tables show the spending and revenue for Littleland in 2010. Use the tables and other informatio...

A: Little land Borrow:Little land Borrow can be calculated as follows:

question_answer

Q: If one gas station reduces its prices, must other gas stations match the price reduction?  Why or wh...

A: Price reduction of gas station:If one gas station decreases its price, then the other gas station no...

question_answer

Q: Hi can I get this queshtion check I think the answer is C but I'm quite unsure.

A: Negative Shocks: In economics, the negative shocks refer to the sudden spike in prices and a decreas...

question_answer

Q: Year Nominal GDP Price Level Population 2011 $3,000 $100 5 2014 $8,000 $200 ...

A: Real GDP:2011 Real GDP can be calculated as follows: