MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
8th Edition
ISBN: 9780134518312
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 2, Problem 7MCQ
To determine
To select:
The option which shows the item of real flow in the circular flow model.
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The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions.
2010
2020
Total spending ($ million)
89
104.12
Local GDP ($ millions)
110
134
Population
50,000
56,275
CPI deflators (2012=1)
0.96
1.05
Calculate per capita spending in 2010 and 2020, respectively, using constant dollars.
*Results round to the nearest dollar.
2010 per capita spending:
2020 per capita spending:
2. Calculate the compound annual growth rate of per capita spending from 2010 to 2020
3. Calculate spending-to-GDP ratios in 2010 and 2020, respectively.
*Results round to the nearest 2 decimal places.
2010 spending-to-GDP ratio:
2020 spending-to-GDP ratio:
Interpret what the two spending-to-GDP ratios tell us about City A’s spending trend.
4. Assuming City A’s population grows at a constant rate in the next decade.…
Draw a circular-flow diagram for a four-sector economy. Identify the each part of the model that correspond to the flow of inputs/resources/goods and services and the flow of rupees/expenditure/income/revenue/receipts.
Chapter 2 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
Ch. 2 - Prob. 1SPPACh. 2 - Prob. 2SPPACh. 2 - Prob. 3SPPACh. 2 - Prob. 4SPPACh. 2 - Prob. 5SPPACh. 2 - Prob. 6SPPACh. 2 - Prob. 7SPPACh. 2 - Prob. 8SPPACh. 2 - Prob. 9SPPACh. 2 - Prob. 10SPPA
Ch. 2 - Prob. 1IAPACh. 2 - Prob. 2IAPACh. 2 - Prob. 3IAPACh. 2 - Prob. 4IAPACh. 2 - Prob. 5IAPACh. 2 - Prob. 6IAPACh. 2 - Prob. 7IAPACh. 2 - Prob. 8IAPACh. 2 - Prob. 9IAPACh. 2 - Prob. 10IAPACh. 2 - Prob. 11IAPACh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQ
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