magine that the United States produces only three goods: apples, bananas, and carrots. The quantities produced and the prices three goods are listed below. Goods Apples Bananas Carrots Quantities Produced 12 22 Prices (5) 2.00 1.50 1.00 Instructions: Round your answers to two decimal places. a. US GDP is: $ b. Suppose that a drought hits the state of Washington. This drought causes the quantity of apples produced to fall to 2 Assuming that all prices remain constant, the new US. GDP is S c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. Now, given this situation carrot sellers decide that the price of carrots is too low, so they agree to raise the price.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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V1
Imagine that the United States produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the
three goods are listed below.
Goods
Apples
Bananas
Carrots
Quantities
Produced
5
12
22
Prices ($)
2.00
1.50
1.00
Instructions: Round your answers to two decimal places.
a US. GDP is: $
b. Suppose that a drought hits the state of Washington. This drought causes the quantity of apples produced to fall to 2
Assuming that all prices remain constant, the new US. GDP is: $
c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. Now, given this
situation, carrot sellers decide that the price of carrots is too low, so they agree to raise the price.
If the U.S. GDP is $80.00, the new price of carrots is: $
per carrot
Transcribed Image Text:Imagine that the United States produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the three goods are listed below. Goods Apples Bananas Carrots Quantities Produced 5 12 22 Prices ($) 2.00 1.50 1.00 Instructions: Round your answers to two decimal places. a US. GDP is: $ b. Suppose that a drought hits the state of Washington. This drought causes the quantity of apples produced to fall to 2 Assuming that all prices remain constant, the new US. GDP is: $ c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. Now, given this situation, carrot sellers decide that the price of carrots is too low, so they agree to raise the price. If the U.S. GDP is $80.00, the new price of carrots is: $ per carrot
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