In 2015, Adanac produced 20 kilos of apples and 30 kilos of bananas. Both fruits were used exclusively for final consumption and nothing else was produced. In 2015, a kilo of apples sold for $5 while a kilo of bananas sold for $10. In 2016, Adanac produced only 10 kilos of apples but produced 40 kilos of bananas. In 2016, prices were $6 per kilo of apples and $8 per kilo of bananas. Using 2015 prices, economists estimate that potential GDP is $400 in 2016. The output gap in 2016 is
A) - $50.
B) + $50.
C) - $100.
D) + $100.
E) - $120.
Correct Answer:
Verified
Q184: In 2015, Adanac produced 20 kilos of
Q185: During the most recent three quarters, real
Q186: In 2015, Adanac produced 20 kilos of
Q187: During the first three quarters of 2015,
Q188: In 2015, Adanac produced 20 kilos of
Q190: During the most recent three quarters, real
Q191: Which word does not describe a phase
Q192: During the most recent three quarters, real
Q193: An economy that experiences two or more
Q194: In 2015, Adanac produced 20 kilos of
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