6. Suppose an economy produces only two goods, cups of coffee and gallons of milk, as shown...

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6. Suppose an economy produces only two goods, cups of coffee and gallons of milk, as shown in Table 11.E1:

a. Calculate the expenditure on each good and the nominal and real GDP for 2010, the base year.

b. Repeat this exercise for each of the three alternative cases (1, 2, and 3).

c. Explain the differences between nominal GDP and real GDP in each of these cases.

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Economics For Managers

ISBN: 9781292060095

3rd Global Edition

Authors: Paul Farnham

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