Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital goods) are $20 billion, $40 billion, and $36 billion, respectively. The Macroeconomy PPF2 PPF, b a Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point b over a 10-year period, what must have been its annual rate of economic growth? b. If, instead, the economy was at point c at the end of the 10-year period, by what percentage did it fall short of its production сapacity? percent percent Capital goods

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
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Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital goods)
are $20 billion, $40 billion, and $36 billion, respectively.
The Macroeconomy
PPF2
PPF,
b
Consumer goods
Instructions: Enter your answers as a whole number.
a. If the economy moves from point a to point b over a 10-year period, what must have been its annual rate of economic growth?
percent
b. If, instead, the economy was at point cat the end of the 10-year period, by what percentage did it fall short of its production
сараcity?
percent
Capital goods
Transcribed Image Text:Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital goods) are $20 billion, $40 billion, and $36 billion, respectively. The Macroeconomy PPF2 PPF, b Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point b over a 10-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point cat the end of the 10-year period, by what percentage did it fall short of its production сараcity? percent Capital goods
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