Some data at first might seem puzzling: The share of GDP devoted to investment was similar for Country liberty and Country Techno from 1970 - 2001. However, during these same years Country Techno had a 6 percent growth rate of average annual income per person, while Country liberty had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different? а. b. Covid 19 pandemic has force the people in the economy Love & Laughter, to consume only 2 goods, food and clothing. The CPI is derived from the market basket of goods which consists of 25 units of food and 5 units of clothing. Clothing $20 FOOD 2018 price per unit 2019 price per unit $8 $12 $40 (i). What are the percentage increases in the price of food and in the price of clothing? (ii). What is the percentage increase in the CPI? iii). Do these price changes affect all consumers to the same extent? Explain.

Some data at first might seem puzzling: The share of GDP devoted to investment was similar for Country liberty and Country Techno from 1970 - 2001. However, during these same years Country Techno had a 6 percent growth rate of average annual income per person, while Country liberty had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different? а. b. Covid 19 pandemic has force the people in the economy Love & Laughter, to consume only 2 goods, food and clothing. The CPI is derived from the market basket of goods which consists of 25 units of food and 5 units of clothing. Clothing $20 FOOD 2018 price per unit 2019 price per unit $8 $12 $40 (i). What are the percentage increases in the price of food and in the price of clothing? (ii). What is the percentage increase in the CPI? iii). Do these price changes affect all consumers to the same extent? Explain.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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