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Each part is 10 points
A) nGDP is $5 trillion in Yr 1 and $5.4 trillion one year later. What is the GDP growth rate?
B) If rGDP in Yr 1 was also $5 trillion what can you say about Yr1?
C) If rGDP grew 5% between Yr. 1 and Yr. 2 what did GDP prices do?
(Hint: use part A. If you know GDP growth with both output and prices and now you now output by itself, what must prices have done?).
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Consider the market for fresh produce in Snowland. Fresh produce is produced expensively in hothouses in Snowland.
Elcidate how slower inventory turnovers, slower receivables collections, or faster payments to suppliers would influence the numbers produced by a cash budget.
Using the monetary tool(s) of your choice what would you do? You need to graph a money demand and supply graph, an Investment graph, and a GDP graph to show how monetary policy effects GDP.
The year is 2007, and the price elasticity of driving on Dulles Toll Road is 1.6. The owners of Dulles Toll Road raise the cost of a one way trip to $8.50.
The United State is currently running an $800 Billion trade deficit. Is this bad for the economy? Suggestion: use the GDP computation, GDP= C + G+ Ig + Xn.
The market is perfectly competitive with constant input prices, and each company has the same cost structure, described through the following table:
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As a government needs to increase tax income, it will often increase the sales tax on gasoline.
Illustrate what policies have been proposed or implemented to address the problem your describe.
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