Assume there are only two goods in the economy, apples and bananas. In 2018, 2,000 apples were sold at $1 each and 8,000 bananas at $0.60 each. In 2019, the price of apples rose to $1.5 and the quantity rose to 2,200; the price of bananas rose to $0.80 and the quantity sold rose to 8,500. Calculate real GDP in 2019 using 2018 as the base year.
What will be an ideal response?
10100
You might also like to view...
In order for there to be a backward-bending supply of labor curve, it must be the case that
A) at low wage rates, the income effect of a wage increase exceeds the substitution effect, but at high wage rates the substitution effect of a wage increase exceeds the income effect. B) at low wage rates, the substitution effect of a wage increase exceeds the income effect, but at high wage rates the income effect of a wage increase exceeds the substitution effect. C) the income effect of a wage increase exceeds the substitution effect at all wage rates. D) the substitution effect of a wage increase exceeds the income effect at all wage rates.
Using Scenario 1, calculate the total cost of pollution when both steel companies are allowed to pollute only one million gallons of thermal water each and the right is not transferable or tradable
What will be an ideal response?
If people have rational expectations and correctly estimate the effects of a change in government policy, when the economy is initially at full employment, any anticipated increase in aggregate demand will result in: a. a decrease in both aggregate demand and short-run aggregate supply
b. an increase in short-run aggregate supply that will maintain full employment. c. higher prices that will reduce aggregate demand to its original level. d. a decrease in short-run aggregate supply that will maintain full employment.
The terms "correlation" and "causation" are synonymous
a. True b. False Indicate whether the statement is true or false