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. The GDP deflator for Raleighville, for 2020, is and it follows that Raleighville experienced between 2000 and 2020. a. 150.0; deflation O b. 150.0; inflation Oc. 283.33, inflation O d. 333.33; inflation
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. The GDP deflator for Raleighville, for 2020, is and it follows that Raleighville experienced between 2000 and 2020. a. 150.0; deflation O b. 150.0; inflation Oc. 283.33, inflation O d. 333.33; inflation
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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.
The GDP deflator for Raleighville, for 2020, is
and it follows that Raleighville experienced
between 2000
and 2020.
O a.
150.0; deflation
O b. 150.0; inflation
O C. 283.33; inflation
O d. 333.33; inflation
age
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