Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its outputs to Services and keeps the rest, while Services sells 72% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures. Denote the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and pg. respectively. If ps = $1000, then PG = $(Type an integer or a decimal.) If Ps $75. then PG $(Type an integer or a decimal.) Goods 0.75 0.72 Services

Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its outputs to Services and keeps the rest, while Services sells 72% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures. Denote the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and pg. respectively. If ps = $1000, then PG = $(Type an integer or a decimal.) If Ps $75. then PG $(Type an integer or a decimal.) Goods 0.75 0.72 Services

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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To answer Questions #1 through #4 use the following information: Suppose that in the nation state of Raleighville there are 2 final goods produced in the economy - dog food and kitten chow. Suppose the economy produces 15 units of dog food and 5 units of kitten chow in 2000 (the base year), and 20 units of dog food and 10 units of kitten chow in 2020. Further suppose the price of dog food was $1.00 per unit in 2000, and $3.00 per unit in 2020; whereas the price of kitten chow was $1.00 in 2000 and $2.50 in 2020. What was the real GDP for Raleighville in 2000? O a. $20.00 O b. $30.00 O c. $57.50 O d. $85.00 Next page
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