Artica is a nation with a simple economy that produces onlysix goods: oranges, bicycles, magazines, paper, orange juice, and hats. Assume that half of all the oranges are used to produce orange juice and one-third of all the paper is used to produce magazines. 2009 2010 2011 PRODUCT QUANTITY PRICE QUANTITY PRICE QUANTITY PRICE 180 $ 0.90 200 $ 1.00 200 $ 1.25 Oranges Bicycles 20 85.00 25 90.00 30 95.00 Magazines Paper 175 3.50 150 3,50 150 3.25 675 0.60 600 0.50 630 0.50 Orange juice 40 3.50 50 4.00 60 4.50 Hats 70 10.00 80 12.50 100 15.00 a. Use the production and price information in the table to calculate nominal GDP for 2011. b. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2009 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?

Artica is a nation with a simple economy that produces onlysix goods: oranges, bicycles, magazines, paper, orange juice, and hats. Assume that half of all the oranges are used to produce orange juice and one-third of all the paper is used to produce magazines. 2009 2010 2011 PRODUCT QUANTITY PRICE QUANTITY PRICE QUANTITY PRICE 180 $ 0.90 200 $ 1.00 200 $ 1.25 Oranges Bicycles 20 85.00 25 90.00 30 95.00 Magazines Paper 175 3.50 150 3,50 150 3.25 675 0.60 600 0.50 630 0.50 Orange juice 40 3.50 50 4.00 60 4.50 Hats 70 10.00 80 12.50 100 15.00 a. Use the production and price information in the table to calculate nominal GDP for 2011. b. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2009 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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_______ Refers To an upper limit on the amount of a commodity that can be purchased by an individual unit?
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