Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 30, Problem 9IAPA
To determine
To explain:
The process by which a decrease in orders of durable goods affects equilibrium expenditure and real
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Calculate total GDP for this economy given the
following components of demand. Round your
answer to the nearest tenth and enter the
value in trillions of dollars.
Components of GDP on the Demand Side
(in trillions of dollars)
Consumption
Investment
Government spending
Exports
Imports
Provide your answer below:
trillion
Total GDP
12.9
3.8
4.2
3.0
4.2
?
Please answer fast please arjent help please answer.
y. "The economy produces three goods: Cell Phones, Computers and Cars. In this
economy, cell phone and computer prices have been falling over time, while car prices have
increased over time. The prices and quantities of these goods, in two different years (year 1
and year 2), are given below
1
2
Quantity of Cell Phones
Quantity of Computers
Quantity of Cars
Price of Cell Phones (8) 100
Price of Computers (8) 1000 600
Price of Cars (8)
100
150
50
100
10
12
80
5000 8000
a Use a Laspeyres index to determine how much prices have changed from year 1 to
year 2. Show your working.
(Hint: You will first construct real DP growth using Laspeyres index)
b. Use Paasche index to determine how much prices have changed from year 1 to year 2.
Show your working.
(Hint: You will first construct real GDP growth using Paasche index)
Chapter 30 Solutions
Foundations of Economics (8th Edition)
Ch. 30 - Prob. 1SPPACh. 30 - Prob. 2SPPACh. 30 - Prob. 3SPPACh. 30 - Prob. 4SPPACh. 30 - Prob. 5SPPACh. 30 - Prob. 6SPPACh. 30 - Prob. 7SPPACh. 30 - Prob. 8SPPACh. 30 - Prob. 9SPPACh. 30 - Prob. 1IAPA
Ch. 30 - Prob. 2IAPACh. 30 - Prob. 3IAPACh. 30 - Prob. 4IAPACh. 30 - Prob. 5IAPACh. 30 - Prob. 6IAPACh. 30 - Prob. 7IAPACh. 30 - Prob. 8IAPACh. 30 - Prob. 9IAPACh. 30 - Prob. 10IAPACh. 30 - Prob. 1MCQCh. 30 - Prob. 2MCQCh. 30 - Prob. 3MCQCh. 30 - Prob. 4MCQCh. 30 - Prob. 5MCQCh. 30 - Prob. 6MCQCh. 30 - Prob. 7MCQCh. 30 - Prob. 8MCQ
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