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QUESTION 14 Imagine an economy that produces only one good, say widgets. In year 1, it produced 10 widgets widget (which sold for $10 cach) and in year two in produced 8 widgets (which sold for $15 each). From year one to year 2, that economy's nominal GDP went A) (up/down - enter number fram sheet, not the ward) and it's real GDP went B) (up/down - enter number from sheet, not the word).

QUESTION 14 Imagine an economy that produces only one good, say widgets. In year 1, it produced 10 widgets widget (which sold for $10 cach) and in year two in produced 8 widgets (which sold for $15 each). From year one to year 2, that economy's nominal GDP went A) (up/down - enter number fram sheet, not the ward) and it's real GDP went B) (up/down - enter number from sheet, not the word).

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
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QUESTION 14 Imagine an economy that produces only one good, say widgets. In year 1, it produced 10 widgets widget (which sold for $10 cach) and in year two in produced 8 widgets (which sold for $15 each). From year one to year 2, that economy's nominal GDP went A) (up/down - enter number fram sheet, not the word) and it's real GDP went B) (up/down - enter number from sheet, not the word). QUESTION 15 The GDP may actually understate the actual level of output in the economy by from five to thirty percent, That's because people have an incentive to avoid taxes or produce illegal goods and services in the A) economy. QUESTION 16 Imagine a hypothetical economy with a population of 100 people, 80 of which over sixteen. Forty eight of these people who are working and twelve people who are willing, able and looking for work cannot find jobs. The unemployment rate in this economy is A) percentage as a whole number, not a decimal, no percentage sign). Suppose that 10 of those unemployed people get discouraged and give up looking for work. Now, the unemployment rate is B) % (enter % (enter percentage as a whole number, not a decimal, no percentage sign).
Transcribed Image Text:QUESTION 14 Imagine an economy that produces only one good, say widgets. In year 1, it produced 10 widgets widget (which sold for $10 cach) and in year two in produced 8 widgets (which sold for $15 each). From year one to year 2, that economy's nominal GDP went A) (up/down - enter number fram sheet, not the word) and it's real GDP went B) (up/down - enter number from sheet, not the word). QUESTION 15 The GDP may actually understate the actual level of output in the economy by from five to thirty percent, That's because people have an incentive to avoid taxes or produce illegal goods and services in the A) economy. QUESTION 16 Imagine a hypothetical economy with a population of 100 people, 80 of which over sixteen. Forty eight of these people who are working and twelve people who are willing, able and looking for work cannot find jobs. The unemployment rate in this economy is A) percentage as a whole number, not a decimal, no percentage sign). Suppose that 10 of those unemployed people get discouraged and give up looking for work. Now, the unemployment rate is B) % (enter % (enter percentage as a whole number, not a decimal, no percentage sign).
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