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

Since you have asked multiple questions, we will solve the first question for you. If you want any…

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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