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Consider an economy that produces only wood and houses within its borders each year. $200,000 worth of wood is produced; $800,000 worth of homes is produced. Of the $200,000 worth of wood that's produced, $120,000 of it is used in home construction.   Assuming this is the only relevant information, calculate

Consider an economy that produces only wood and houses within its borders each year. $200,000 worth of wood is produced; $800,000 worth of homes is produced. Of the $200,000 worth of wood that's produced, $120,000 of it is used in home construction.   Assuming this is the only relevant information, calculate

Macroeconomics: Principles and Policy (MindTap Course List)
Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter6: How Statisticians Measure Inflation
Section6.A: How Statisticians Measure Inflation
Problem 2TY
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Consider an economy that produces only wood and houses within its borders each year. $200,000 worth of wood is produced; $800,000 worth of homes is produced. Of the $200,000 worth of wood that's produced, $120,000 of it is used in home construction.

 

Assuming this is the only relevant information, calculate this economy's GDP, carefully following all numeric instructions. 

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