Refer to Table 19-21. Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2016, using 2014 as the base year. Show your work
What will be an ideal response?
Nominal GDP for 2016 equals (250 × $21 ) + (2,300 × $2 ) + (50 × $140 ) = $16,850.
Real GDP for 2016 equals (250 × $20 ) + (2,300 × $1 ) + (50 × $200 ) = $17,300.
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Suppose the demand curve for corn is inelastic between the current price and price that exists after the supply of corn falls. It follows that
A) fewer farmers are producing corn at the new price than at the old price. B) the total revenue for corn is lower at the new price than at the old price. C) the total revenue for corn is higher at the new price than at the old price. D) more farmers are producing corn at the new price than at the old price. E) a and c
Refer to the table. Over the $10-$8 price range, the elasticity coefficient of supply is:
A. 1.
B. zero.
C. less than 1.
D. greater than 1.