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Assignment: Intermediate Macroeconomics
1.) "Trade Can Make Everyone Better Off". Explain how, if you agree?
2.) In Movieland, there are only 3 goods: popcorn, movie shows, and diet drinks. The following table shows the prices and quantities produced of these goods in 2013, 2014, and 2015:
Year
Price of popcorn
Quantity of popcorn
Price of movie shows
Quantity of movie shows
Price of diet drinks
Quantity of diet drinks.
2013
$5
450
$25
225
$15
150
2014
$6
550
$50
250
$12
200
2015
$9
950
$65
275
$ 10
Required: (2013 is base year)
a) Calculate the Nominal GDP for all three years.b) Calculate the Real GDP for all three years.c) Calculate the annual growth rate of nominal GDP ( for 2014 & 2015)d) Calculate the annual real economic Growth rate (for 2014 & 2015).
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