Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice per Unit18$22103315441855206If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is ________.
A. 60%
B. 100%
C. 40%
D. 80%
Answer: D
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What would be expected to happen to the size of the underground economy if:
a. businesses tax rates decreased. b. government regulations on businesses increased dramatically. c. the sale and use of marijuana was legalized in all 50 states.
Assume that excessive lobbying by tea cultivators led to the announcement of a price floor higher than the equilibrium price of tea. This legislation is likely to result in a shortage of tea leaves in the market
Indicate whether the statement is true or false
GDP is: a. the total value of all consumer expenditures within a given period
b. national income after taxes. c. the total value of all final goods and services plus intermediate goods and services produced domestically within a given period. d. the value of all final goods and services produced domestically within a given period.
The central reason why there are gains from international trade is because a. trading allows otherwise unemployed people to have jobs
b. the rate of interest is not the same in all countries. c. resources are not equally distributed to all nations. d. those nations with absolute advantages in producing many goods can produce all of those goods at lower opportunity costs than other countries.