Nation with a simple economy that produces only six goods

Assignment Help Microeconomics

Reference no: EM13700171

Artica is a nation with a simple economy that produces only six goods: oranges, bicycles, magazines, paper, orange juice, and hats. Assume that half of all the oranges are used to produce orange juice and one-third of all the paper is used to produce magazines.

a. Use the production and price information in the table to calculate nominal GDP for 2011.

b. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2009 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?

c. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2010 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?

Reference no: EM13700171

Questions Cloud

Evaluate the trend of london stock exchange : A study to evaluate the trend of london stock exchange in the light of its impact and interreationship with share prices

Determine allowable straight line depreciation deductions : Depreciable residential rental real property has been purchased for $70,000 and put into service during the third month of the taxpayer's tax year. For the applicable 27.5 year depreciation life, determine the allowable straight line depreciation ded..

Calculate the optimal price : As a manager of a firm you find the marginal cost of the firm to be $10 and the fixed cost $100. For the range of prices that you are planning to charge, own price elasticity of demand is believed to be –1.25. Calculate the optimal (profit maximizing..

Balance between customer and competitor orientations : Why is it important for a company to maintain a balance between customer and competitor orientations and Segmentation strategy

Nation with a simple economy that produces only six goods : Artica is a nation with a simple economy that produces only six goods: oranges, bicycles, magazines, paper, orange juice, and hats. Assume that half of all the oranges are used to produce orange juice and one-third of all the paper is used to produce..

An exogenous decrease in the velocity of money : Let’s examine how the goals of the central bank influence its response to shocks. Suppose the European Central Bank (the ECB) cares only about keeping the price level stable and the US central bank (the Fed) cares only about keeping output at its nat..

The fed reduces the money supply : Suppose the Fed reduces the money supply by 5 percent. What happens to the aggregate demand curve? What happens to the level of output and the price level in the short run and in the long run? According to Okun’s law, what happens to unemployment in ..

Depreciable residential rental real property : Depreciable residential rental real property has been purchased for $70,000 and put into service during the third month of the taxpayer's tax year. For the applicable 27.5 year depreciation life. How many months of depreciation should be generated fo..

Best motivational package : According to the career opportunities on their websites, what are some of the things that all three firms (Volkswagen, Volvo, and Ford) offer to motivate new employees? Which of the three has the best motivational package?

User Account

All Pages