Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An economy produces only fun and food. In 2020 . The table shows the prices and the quantities of fun and food produced in 2020

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
An economy produces only fun and food. In 2020 . The table shows the prices and the quantities of fun and food produced in 2020 and 2021. The It Q t' Price base year is 2020. em "an my (dollars) _ . Fun 37 1 Calculate nominal GDP In 2020 and 2021. Food 57 6 In 2021 Price Nominal GDP in 2020 is $ . Item Quantity (dollars) Fun 39 2 Nominal GDP in 2021 is $ Food 59 12 Investors snapping up US homes at record levels With confidence in the housing market and low mortgage interest rates, U.S. investors are buying new and existing homes at a record high rate. Source: Fox News, August 8, 2019 Where do sales and inventories of existing homes appear in the circular flow of expenditure and income? How does an increase in sales of existing homes and a low inventory of existing homes affect real GDP? Sales and inventories of existing homes in the circular flow of expenditure and income. An increase in sales of existing homes and a low inventory of existing homes GDP. A. appear as a flow of investment from households through factor markets; increases O B. are not part of current expenditure, so they do not appear; does not influence O C. appear as a flow of investment from firms through goods markets to households; increases O D. appear as a flow of consumption expenditure from households to firms through financial markets; does not influence O E. are part of the flow of investment, so they do appear; increases

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Michael Parkin

10th Edition

013485330X, 978-0134853307

More Books

Students also viewed these Economics questions