Output and Prices for an Imaginary Economy for 2019 and 2020 Product Quantity in 2019 Price in 2019 Quantity in 2020 Price in 2020 Toy Airplanes 100 $5 110 $8 Bobsleds 75 $12 65 $11 Given the information for an imaginary economy that produces just the two goods listed in the table above, answer the following questions: 1. Did real GDP rise or fall in this economy between 2019 and 2020? How do you know? 2. Did the average level of prices rise or fall in this economy between 2019 and 2020? How do you know?

Output and Prices for an Imaginary Economy for 2019 and 2020 Product Quantity in 2019 Price in 2019 Quantity in 2020 Price in 2020 Toy Airplanes 100 $5 110 $8 Bobsleds 75 $12 65 $11 Given the information for an imaginary economy that produces just the two goods listed in the table above, answer the following questions: 1. Did real GDP rise or fall in this economy between 2019 and 2020? How do you know? 2. Did the average level of prices rise or fall in this economy between 2019 and 2020? How do you know?

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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