Question
Suppose an economy produces only one good. In the base year, production was 8 units at a price of $10 each. The next year, production
Suppose an economy produces only one good. In the base year, production was 8 units at a price of $10 each. The next year, production increased to 9 units and the price of the good increased to $12.
- Find nominal GDP in years 1 and 2.
- If the price index is 100 in the base year, what is the value of the price index in year 2?
- Find real GDP in year 2.
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Climate Policy And Nonrenewable Resources The Green Paradox And Beyond
Authors: Karen Vollebergh, Rick Van Der Ploeg
1st Edition
0262319845, 9780262319843
