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Happening in a versus b using a ppf diagram

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Reference no: EM131605612

Question1: TRUE/FALSE and EXPLAIN: "GDP is equal to $1 trillion in 2010 according to the expenditure approach. If there are two stages of production (primary and then final) and primary output is equal to $400 billion, then, using the production approach to measure GDP, GDP will be equal to $600 billion." Confine your answer to one paragraph.

Question 2: Technical model usage

You have two economies, A and B. A is experiencing rapid technological innovation between Year 1 and Year 2. B is suffering from an outflow of foreign capital during the same period. (a) Depict what is happening in A versus B using a PPF diagram. (b) Explain your answer and diagram in one paragraph.

Reference no: EM131605612

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