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Consider a Small Economy Where Factor Supply Is 1000 Units

Question 38

Multiple Choice

Consider a small economy where factor supply is 1000 units, the factor utilization rate is 0.9 and a simple measure of productivity (GDP per factor employed) is $80. This economy's GDP is


A) $72 000
B) $7200
C) $88 888
D) $90 000
E) $80 000

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