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Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648 Exercise 16
Imagine that the U.S. produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the three goods are listed in Table 7P-6.
a. Calculate the GDP of the United States in this three-goods version of its economy.
b. Suppose that a drought hits the state of Washington. This drought causes the quantity of apples produced to fall to 2. Assuming that all prices remain constant, calculate the new U.S. GDP.
c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in Table 7P-6. Now, given this situation, carrot sellers decide that the price of carrots is too low, so they agree to raise the price. What must be the new price of carrots if the U.S. GDP is $60?
a. Calculate the GDP of the United States in this three-goods version of its economy.
b. Suppose that a drought hits the state of Washington. This drought causes the quantity of apples produced to fall to 2. Assuming that all prices remain constant, calculate the new U.S. GDP.
c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in Table 7P-6. Now, given this situation, carrot sellers decide that the price of carrots is too low, so they agree to raise the price. What must be the new price of carrots if the U.S. GDP is $60?
Explanation
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Given information:
Table -1 shows price...
Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
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