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Each part is 10 points
A) nGDP is $5 trillion in Yr 1 and $5.4 trillion one year later. What is the GDP growth rate?
B) If rGDP in Yr 1 was also $5 trillion what can you say about Yr1?
C) If rGDP grew 5% between Yr. 1 and Yr. 2 what did GDP prices do?
(Hint: use part A. If you know GDP growth with both output and prices and now you now output by itself, what must prices have done?).
Earlier this year the increasing price of tortillas resulted in major protests in Mexico City combined with a warning from Mexican central bank that this may fuel rising inflation.
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Determine which of the following is not one of the basic preconditions for economic growth?
Illustrate what might be some practical problems or issues the country might face with this proposed plan.
Explain why do you think 75 percent of the participants voted against the proposal.
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