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The economy of Tuland produces only two products shirts and cell phones. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of shirts Quantity of cell phones 200 220 60 69 Price of shirts $12.00 $14.40 Price of cell phones $40.00 $43.20 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.)

The economy of Tuland produces only two products shirts and cell phones. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of shirts Quantity of cell phones 200 220 60 69 Price of shirts $12.00 $14.40 Price of cell phones $40.00 $43.20 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The economy of Tuland produces only two products shirts and cell phones. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of shirts Quantity of cell phones 200 220 60 69 Price of shirts $12.00 $14.40 Price of cell phones $40.00 $43.20 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.) GDP for 2009 in 2009's prices $ 4800 GDP for 2009 in 2010's prices $ 5472 GDP for 2010 in 2009's prices $ 5400 GDP for 2010 in 2010's prices $ 6149 % Using 2009 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. % Using 2010 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. The geometric average of the two inflation rates
Transcribed Image Text:The economy of Tuland produces only two products shirts and cell phones. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of shirts Quantity of cell phones 200 220 60 69 Price of shirts $12.00 $14.40 Price of cell phones $40.00 $43.20 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.) GDP for 2009 in 2009's prices $ 4800 GDP for 2009 in 2010's prices $ 5472 GDP for 2010 in 2009's prices $ 5400 GDP for 2010 in 2010's prices $ 6149 % Using 2009 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. % Using 2010 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. The geometric average of the two inflation rates
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