Macroeconomics for Today (MindTap Course List)
9th Edition
ISBN: 9781305507142
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Chapter P3, Problem 3KC
To determine
The impact of the sizable underground economy on
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QUESTION 15
Robert loves eating pizza. He bought flour and used it to bake pizza. CARMIN Bakery bought flour which it used to bake pizza that customers purchased. In which
case will the flour be counted as a final good?
Robert's purchase and CARMIN Bakery's purchase.
CARMIN Bakery's purchase but not Robert's purchase.
Robert's purchase but not CARMIN Bakery's purchase.
Neither Robertť's purchase nor CARMIN Bakery's purchase.
a.
C.
d.
O a
O b
O c
O d
QUESTION 16
In 2020, a farmer sells $20 million worth of corn to REFG Company. REFG Company produces $25 million worth of cereal in 2020, with sales to households during
the year of $21 million. The unsold $4 million worth of cereal remains in REFG Company's inventory at the end of 2020. The transactions just described contribute
how much to GDP for 2020?
a.
$21 million
b.
$20 million
C.
$45 million
d.
$25 million
O a
O b
The AD-AS graph below illustrates the U.S. economy at the end of 2021. Actual real GDP was $18.4 trillion, and full employment
output was $19.3 trillion. On the graph, use the drag tool to illustrate the impact of the 8 million $600 payments by shifting the
aggregate demand line or short-run aggregate supply line the in the appropriate direction.
(c)
Between 2018 and 2021, GDP measured in current prices fell from RM96 billion to
RM48 billion. Over the same period, the relevant price index fell from 100 to 75.
Calculate:
(i) The percentage decline in nominal GDP from 2019 to 2021.
(ii) The percentage decline in real GDP from 2019 to 2021.
During the pandemic, the Malaysian real GDP is substantially lower than it was
predicted prior to pandemic era. Prior to the pandemic, the economy is expected to
grow at 5.5% per annum. However, due to the covid-19 disaster, the Malaysian
economy now is expected to grow at 4.1%. A significant 1.4% lower than previously
expected.
(d)
Explain the above statement in terms of the Malaysian citizens well-being.
Chapter P3 Solutions
Macroeconomics for Today (MindTap Course List)
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