ProductionPricesYear1 Year 2 Year 3Year 1 Year 2 Year 3Good X60 80100$1.00 $1.00 $1.40Good Y100 110 130$0.80 $0.90 $1.00Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the valuefor this economy's GDP deflator in year 2 isSelect one:O a. 106.5O b. 100O . 179O d. 93.9 A firm invests $125 million in a new manufacturing plant in your country. What would be the impact on thecountry's production function?Select one:O a. shift outwardsO b. movement upwards along the same curveO c. shift inwardsO d. movement downward along the same curveO e. remain unchanged

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Production Prices Year1 Year 2 Year 3 Year 1 Year 2 Year 3 Good X 60 80 100 $1.00 $1.00 $1.40 Good Y 100 110 130 $0.80 $0.90 $1.00 Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 2 is

Production Prices Year1 Year 2 Year 3 Year 1 Year 2 Year 3 Good X 60 80 100 $1.00 $1.00 $1.40 Good Y 100 110 130 $0.80 $0.90 $1.00 Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 2 is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Production
Prices
Year1 Year 2 Year 3
Year 1 Year 2 Year 3
Good X
60 80
100
$1.00 $1.00 $1.40
Good Y
100 110 130
$0.80 $0.90 $1.00
Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value
for this economy's GDP deflator in year 2 is
Select one:
O a. 106.5
O b. 100
O . 179
O d. 93.9

A firm invests $125 million in a new manufacturing plant in your country. What would be the impact on the
country's production function?
Select one:
O a. shift outwards
O b. movement upwards along the same curve
O c. shift inwards
O d. movement downward along the same curve
O e. remain unchanged

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