In 2014, GDP was $12 million and the price of the market basket was $4O. In 2020, GDP was $15 million and the price of the market basket was $90. Looking at this data, can we conclude that the production level of this country was higher in 2020? Why? Or Why not?

In 2014, GDP was $12 million and the price of the market basket was $4O. In 2020, GDP was $15 million and the price of the market basket was $90. Looking at this data, can we conclude that the production level of this country was higher in 2020? Why? Or Why not?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section7.2: The Expenditure Approach To Computing Gdp For A Real World Economy

Problem 3ST

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Question

In 2014, GDP was $12 million and the price of
the market basket was $4O. In 2020,
GDP was $15 million and the price of the
market basket was $90. Looking at this
data, can we conclude that the production
level of this country was higher in 2020?
Why? Or Why not?

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