Bundle: Principles of Macroeconomics, Loose-Leaf Version, 7th + Aplia, 1 term Printed Access Card
7th Edition
ISBN: 9781305134935
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 12, Problem 1QR
To determine
Importance of the level and growth of GDP .
Expert Solution & Answer
Explanation of Solution
The level of a nation’s GDP measures both the total income earned by the nation and the total expenditure on the nation’s output of goods and services.
The growth rate of real GDP is a good measure of economic progress whereas the level of GDP is a good measure of economic prosperity. It is always preferred to live in a nation with greater economic prosperity; hence it is preferred to live in a nation with a high level of GDP than a low level of GDP even if the nation has a low growth rate.
Economics Concept Introduction
Concept Introduction:
GDP (Gross Domestic Product): Gross domestic product refers to the value of total goods and services produced in the given period of time within the boundaries.
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Cross Price Elasticity (Exy)
(QDX-QDo/[(QDN+QDDA)/2]
(P-POR/[(PNE+POB)/2]¯¯
11. QD of good A falls from 100 to 90 as the price of good B rose from $10 to $20.
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(90-100) [(90+100) 21-10/95-105 - -.158
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Typs of good: complement
12. QD of good A rose from 300 to 400 as the price good K increased from $1 to $2.
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13. QD for good I falls from 2000 to 1500 units as price of good Krose from $10 to $15.
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14. QD for good X rose from 100 to 101 units as price of good Y increases from, $8 to $15.
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Page 124 (368)
Value of
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Description
Positive (0)
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Quantity Demanded of W changes in same direction a change in price if Z
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Chapter 12 Solutions
Bundle: Principles of Macroeconomics, Loose-Leaf Version, 7th + Aplia, 1 term Printed Access Card
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