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 $32 billion, respectively. Capital goods G A Economic growth Optimal output combination B D Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point bover a 7-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point c at the end of the 7-year period, by what percentage did it fall short of its production capacity? Inercent.

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 $32 billion, respectively. Capital goods G A Economic growth Optimal output combination B D Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point bover a 7-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point c at the end of the 7-year period, by what percentage did it fall short of its production capacity? Inercent.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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