Essay
Imagine that an economy produces two goods, flashlights and fishing lures. In 2011, the economy produced 100 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $5 and $11, respectively. In 2012, the economy produced 120 flashlights and 60 fishing lures, and the prices of flashlights and fishing lures were $7 and $14, respectively. respectively. What happened to nominal GDP from 2011 to 2012? What happened to real GDP?
Correct Answer:
Verified
Nominal GDP in 2011 was (100 x 5) + (50 ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q102: Net investment is<br>A) what is left over
Q103: Explain the difference between U.S. GDP and
Q104: Which of the following is NOT a
Q105: As a component of GDP, consumption expenditures
Q106: Suppose that a tire factory produces $825,000
Q108: GDP understates the value of output produced
Q109: If Cassie's Coffee House purchases 42 cents
Q110: Recall the Application about the size of
Q111: To an economist, "investment" in the GDP
Q112: Net exports are total imports minus total