The annual output and prices of a three-good economy are shown in the table below. Quantity of Goods Year 1 Quantity of Goods Year 2 Good Price Year 1 Price Year 2 Quarts of ice cream Bottles of shampoo Jars of peanut butter $ 5 $ 4 $ 2 $ 5 $ 4 $ 2 4 4 3 Instructions: Enter your answers as a whole number. a. What was the economy's nominal GDP in year 1? es b. What was its nominal GDP in year 2? %24

The annual output and prices of a three-good economy are shown in the table below. Quantity of Goods Year 1 Quantity of Goods Year 2 Good Price Year 1 Price Year 2 Quarts of ice cream Bottles of shampoo Jars of peanut butter $ 5 $ 4 $ 2 $ 5 $ 4 $ 2 4 4 3 Instructions: Enter your answers as a whole number. a. What was the economy's nominal GDP in year 1? es b. What was its nominal GDP in year 2? %24

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 6CQQ

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Beth and Eleanor are considering contributing toward the creation of a building mural. Each can choose whether to contribute $400 to the building mural or to keep that $400 for a weekend getaway. Since a building mural is a public good, both Beth and Eleanor will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.60 of benefit. For example, if both Beth and Eleanor choose to contribute, then a total of $800 would be contributed to the building mural. So, Beth and Eleanor would each receive $480 of benefit from the building mural, and their combined benefit would be $960. This is shown in the upper left cell of the first table. Since a weekend getaway is a private good, if Beth chooses to spend $400 on a weekend getaway, Beth would get $400 of benefit from the weekend getaway and Eleanor wouldn't receive any benefit from Beth's choice. If Beth still spends $400 on a weekend getaway and…
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