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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 24
Suppose that the British economy produces two goods: laptops and books. The quantity produced and the prices of these items for 2010 and 2011 are shown in Table 7P-8.
a. Let's assume that the base year was 2010, so that real GDP in 2010 equals nominal GDP in 2010. If the real GDP in Britain was $15,000 in 2010, what was the price of books?
b. Using your answer from part a, if the growth rate in nominal GDP was 10 percent, how many books must have been produced in 2011?
c. Using your answers from parts a and b, what is the real GDP in 2011? What was the growth rate in real GDP between 2010 and 2011?
a. Let's assume that the base year was 2010, so that real GDP in 2010 equals nominal GDP in 2010. If the real GDP in Britain was $15,000 in 2010, what was the price of books?
b. Using your answer from part a, if the growth rate in nominal GDP was 10 percent, how many books must have been produced in 2011?
c. Using your answers from parts a and b, what is the real GDP in 2011? What was the growth rate in real GDP between 2010 and 2011?
Explanation
Verified
Verified
a.Price of 'Bo' 2010:
Price can be calc...
Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
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