6.Prior to 2009, Zimbabwe experienced several years of declining real GDP.According to an article in the Wall Street Journal, “After Zimbabwe abandoned itscurrency in favor of the greenback, the economy grew at an annual rate of 6% in 2009and 9% in 2010."Why would Zimbabwe abandon its own currency to begin using U.S.dollars ("greenbacks")?economyWhy would using the U.S. dollar as its currency have enabled theof Zimbabwe to resume growing?What potential problems could using U.S. dollars rather than its owncurrency pose for the Zimbabwean government?

Answered: 6. Prior to 2009, Zimbabwe experienced…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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6.
Prior to 2009, Zimbabwe experienced several years of declining real GDP.
According to an article in the Wall Street Journal, “After Zimbabwe abandoned its
currency in favor of the greenback, the economy grew at an annual rate of 6% in 2009
and 9% in 2010."
Why would Zimbabwe abandon its own currency to begin using U.S.
dollars ("greenbacks")?
economy
Why would using the U.S. dollar as its currency have enabled the
of Zimbabwe to resume growing?
What potential problems could using U.S. dollars rather than its own
currency pose for the Zimbabwean government?

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GDP or gross domestic product is a measure of a country's economic output and is calculated by adding up the value of all goods and services that are produced within the country's borders in a given period, usually a year. It is a useful indicator of a country's economic health and is often used to compare the economic performance of different countries.

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