Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 21, Problem 3.8P
To determine
To evaluate the statement that the rise in prices may lead to a fall in
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Students have asked these similar questions
Evaluate the following statement: Even if the prices of a
large number of goods and services in the economy increase
dramatically, the real GDP for the economy can still fall.
Calculate total GDP for this economy given the
following components of supply. Round your
answer to the nearest tenth and enter the
value in trillions of dollars (i.e. $xx.x trillion).
of GDP on the Supply Side
(in trillions of dollars)
Components
Durable goods
Nondurable goods
Services
Structures
Change in inventories
Provide your answer below:
trillion
Total
3.8
2.7
12.2
2.1
0
?
Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. Further, assume that all of the cotton is
used to produce shirts.
Product
Shoes
Hamburgers
Shirts
Cotton
2020 Statistics
Price Quantity
$50.00
100
2.50
110
35.00
55
0.09 10,000
(round your answer to the nearest penny) and the real GDP for 2021 equals $ (round your answer to the nearest penny).
2012 Statistics
Quantity
90
80
60
11,000
Price
$60.00
2.50
30.00
0.08
2021 Statistics
Quantity Price
100 $65.00
125 2.75
75 30.00
0.07
11,000
a. If the base year is the year 2012, then real GDP for 2020 equals $
b. The (annual) growth rate of real GDP in 2021 is %. (Enter your response as a percentage rounded to two decimal places.)
Chapter 21 Solutions
Principles of Economics (12th Edition)
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