### Economic Growth AnalysisAn economy produces only two goods: fun and food. The table below details the prices and quantities of these goods produced in 2020 and 2021. The base year is 2020.#### Goods and Prices**In 2020:**- Item: Fun - Quantity: 40 - Price: $2- Item: Food - Quantity: 60 - Price: $3**In 2021:**- Item: Fun - Quantity: 35 - Price: $3- Item: Food - Quantity: 65 - Price: $2#### Economic ContextIf the potential GDP in 2020 was $270, and it grew by 1% in 2021, in which phase of the business cycle is the economy?#### Options for Economic Phase Analysis1. **A:** The economy is in an expansion because potential GDP is increasing.2. **B:** The economy is in an expansion because real GDP is increasing.3. **C:** The economy is in a recession because potential GDP is increasing at a slower rate than real GDP is increasing.4. **D:** The economy is in an expansion because real GDP is increasing at a faster rate than potential GDP is increasing.5. **E:** The economy is in a recession because real GDP is less than potential GDP.This analysis aims to determine the economic phase by comparing changes in quantity, price, and potential GDP growth.

Potential output or GDP is the full employment output level where al the economy's resources are…

An economy produces only fun and food. The table shows the prices and the quantities of fun and food produced in 2020 and 2021. The base year is 2020. If potential GDP in 2020 was $270 and it grew by 1 percent in 2021, in which phase of the business cycle is the economy? **** The economy is in OA. an expansion; potential GDP is increasing OB. an expansion; real GDP is increasing OC. a recession; potential GDP is increasing at a slower rate than real GDP is increasing because between 2020 and 2021. OD. an expansion; real GDP is increasing at a faster rate than potential GDP is increasing OE. a recession; real GDP is less than potential GDP In 2020 Item Fun Food In 2021 Item Fun Food Quantity 40 60 Quantity 35 65 Price $2 $2 $3 Price $3

An economy produces only fun and food. The table shows the prices and the quantities of fun and food produced in 2020 and 2021. The base year is 2020. If potential GDP in 2020 was $270 and it grew by 1 percent in 2021, in which phase of the business cycle is the economy? **** The economy is in OA. an expansion; potential GDP is increasing OB. an expansion; real GDP is increasing OC. a recession; potential GDP is increasing at a slower rate than real GDP is increasing because between 2020 and 2021. OD. an expansion; real GDP is increasing at a faster rate than potential GDP is increasing OE. a recession; real GDP is less than potential GDP In 2020 Item Fun Food In 2021 Item Fun Food Quantity 40 60 Quantity 35 65 Price $2 $2 $3 Price $3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7. Determine whether the following scenarios would increase, decrease or have no impact on potential GDP in the country of Torania: A. Technological improvements B. Productivity of workers in Torania decline C. Households across Torania see a decline in home prices, reducing household wealth 1. Decrease potential GDP ✓ 2. Increase potential GDP 3. No impact on potential GDP
2. < Previous Nex Determine whether the following scenarios would increase, decrease or have no impact on potential GDP in the country of Questville: A. Questville 's workers have more and better capital available B. Access to capital like machinery for workers is reduced C. Houscholds across Questville see a decline in home prices, reducing household wealth 1. No impact on potential GDP 2 2. Increase potential GDP 23. Decrease potential GDP
Suppose that in the year 2020, your income has doubled and prices of all goods have doubled too. In 2020, how much will you be able to buy with your income?*A. More than todayB. The sameC. Less than today
roduces only two final goods: fish and berries. The table shows Question Viewer and quantities produced and the prices of these final goods in 2020 and 2021. The base year is 2020. By what percentage did real GDP change in 2021? In 2021, real GDP changed by >>> Answer to 1 decimal place. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. percent. In 2020 Item Fish Berries In 2021 Item Fish Berries Quantity 130 40 Quantity 85 75 Price $1 $6 Price $5 $10
3 Two countries A & B have completely fixed and flexible prices respectively. Consider this data GDP A Prices A GDP B Prices B year 1 5200 units 26 5200 units 26 year 2 there occurs a negative demand shock. A has a 30% decline in output. B has a 30% decline in prices. Compute Real GDP in A and B in year 1 and 2. 4 answers. Which county would experience a recession? Why?
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H6. Fill in the blank: An economy is in a recession if ____________ falls over two quarters (six months). Select one: a. nominal GDP b. real GDP c. gross national happiness d. the unemployment rate
Select the statement below which highlights the role of real GDP: “The growth in real GDP has been much lower than expected over the last few years and... Group of answer choices Unemployment has been rising as a result creating hardship for many in the country. The country is currently in a mild but lasting recession. Inflation is making the growth numbers more optimistic. The government needs to adjust how GDP is being measured
Potential GDP Select one: A. never changes. B. increases as the price level rises. C. is the level of real GDP when unemployment is zero. D. does not vary with the price level. E. increases as the quantity of money in the economy increases.
Question 40 In the economy of Ukzten in 2010, consumption was $1000, exports were $100, government purchases were $450, imports were $150, and investment was $350. What was Ukzten's GDP in 2010? A. $1750 B. $1900 C. $1850 OD. $2050 0.
FRED S s The Graph above shows the percentage growth in real GDP. Which phase of the business cycle describes the shaded periods? O Expansion O Contraction O Peak O Depression
20) One of the key factors that determine an economy's real GDP is labor productivity, which is a meaare e a. input per hour of work. C. output per hour. b. labor force per hour. d. total hours worked.