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Consider an economy that produces only two goods, bicycles and loaves of bread. The following chart reports the expenditure on these two goods by households
Consider an economy that produces only two goods, bicycles and loaves of bread. The following chart reports the expenditure on these two goods by households and by the government in 2020 along with the price of each good in dollars Good quantity purchased by price bicycles households government 1 unsold 10 total $10 bread 80 households 20 government unsold 100 total $1 Assume there are no imports or exports in this economy. Using the expenditure approach to measuring GDP, answer the following questions: i) What is consumption expenditure in this economy? $ ii) What is the value of government purchases of goods in this economy? $ iii) What is investment expenditure in this economy? $ iv) What is nominal GDP in this economy? $
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