Consider a small country producing only two commodities (coffee beans and corn) . Following are the price and output of these two commodities in the year 2008: Assuming that the output of these two commodities remains constant, while the price of each rises by 10 percent in 2009, compute the value of real GDP in 2009.
Price
Quantity
$12
500 lbs. of coffee beans
$6
600 bushels of corn
A) $12,000
B) $10,560
C) $9,600
D) $8,400
E) $6,560
Correct Answer:
Verified
Q41: If net investment spending in a nation
Q45: Scenario 5.1
Suppose that personal income is $250
Q51: The table given below reports the
Q58: Which of the following is true of
Q65: National income accounting fills in the dollar
Q66: Consider a small country producing only two
Q73: Suppose the current price of DVDs is
Q75: The table given below reports the
Q76: The price index for the current year
Q77: The table given below lists the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents