Refer to the figure below and assume that the values for points a, b, and c(the combined value of consumer goods and capital goods) are $20 billion, $40 billion, and $32 billion, respectively. Capital goods G A Economic growth Optimal output combination B D Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point bover a 7-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point c at the end of the 7-year period, by what percentage did it fall short of its production capacity? Inercent.

Refer to the figure below and assume that the values for points a, b, and c(the combined value of consumer goods and capital goods) are $20 billion, $40 billion, and $32 billion, respectively. Capital goods G A Economic growth Optimal output combination B D Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point bover a 7-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point c at the end of the 7-year period, by what percentage did it fall short of its production capacity? Inercent.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Question

Refer to the figure below and assume that the values for points a, b, and c(the combined value of consumer goods and capital goods)
are $20 billion, $40 billion, and $32 billion, respectively.
C
>
Capital goods
Economic
growth
Optimal output
combination
B D
Consumer goods
Instructions: Enter your answers as a whole number.
a. If the economy moves from point a to point bover a 7-year period, what must have been its annual rate of economic growth?
percent
b. If, instead, the economy was at point c at the end of the 7-year period, by what percentage did it fall short of its production capacity?
Inercent

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