Price level (GDP price index, 2009 = 100) Potential GDP AS2 ASI 0 Real GDP (trillions of 2009 dollars) The change reflected in the above figure might be a result of O a decrease in the money prices of resources other than labor. a decrease in the quantity of capital. Oa rise in the money wage rate. O a fall in the price level. an increase in the quantity of labor.

8. The table below shows the total population, GDP per capita at current prices and according to fixed price (constant) from 2018-2020 for country X. Year GDP percapita GDP percapita Total Population current price contant price (in RM million) (in RM million) 2018 174960 41920 27320 2019 178460 46110 29230 2020 182030 49800 30690 Calculate GDP at current price and GDP at constant price for each year in the table above. Calculate inflation rate and economic growth rates for 2019 and 2020. a. b.

Cosider the following data on U.S GDP:a.What was the growth rate of nominal GDP between 1994 to 2014?b.What was the growth rate of the GDPdeflator between 1994 to 2014?c.What was the real GDP in 1994 measured in 2009 prices?d.What was the real GDP in 2014measured in 2009 prices?e.What was the growth rate of the GDP between 1994 to 2014?f.Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP?Explain.

Consider an economy that produces wood, boats, and has a marketing agency.This year domestic wood production generates revenues of $80. Of this $80 worth of wood, $40were purchased by the boat producer and $40 were sold abroad to a foreign company. The woodproducer paid $40 worth of wages and $10 worth of taxes.The boat producer combines the services of the marketing agency, the wood it purchased from thewood producer, and $20 worth of labor (wages) to produce $120 worth of boats. Its revenues,which include a boat produced in the previous year and that was carried as inventory, are $130.Domestic families buy all these boats. This company pays $10 worth of taxes.The marketing agency, whose sole client is the boat company, generates a revenue of $40 whichis enough to cover its labor costs of $40. This company pays no taxes.The government in this economy uses the $20 worth of taxes and builds a port. The cost of theport is $40 that are paid to workers. This port is partially financed by…

Q7 A restaurant in the US imports $5,000 of Belgian beer into the U.S. and sells the beer together with hamburgers and fries. The inputs used to produce the hamburgers and fries were produced entirely within the US. The revenue received by the restaurant from the sale of burgers, fries, and beer is $45,000. As a result of these transactions: O Belgian GDP is unchanged and U.S. GDP rises by $50,000. O Belgian GDP rises by $5,000 and U.S. GDP rises by $45,000. O Bihnian GDP is unchanged and U.S. GDP rises by $45,000. O Belgian GDP rises by $5,000 and U.S. GDP rises by $40,000.

Identify the effect on GDP due to the following factors. Factors Effect on GDP An improvement in transportation facilities. A decreased investment in infrastructure. An increase in brain drain in a nation. Increase in GDP Decrease in GDP The use of advanced technology Which of the following statements regarding the aggregate production function is true? O A. GDP increases at a decreasing rate for every unit increase in the efficiency units of labor B. GDP increases at an increasing rate for every unit increase in the physical capital stock C. GDP increases by a constant amount for every unit increase in the physical capital stock. O D. GDP decreases by a constant amount for every unit increase in the efficiency units of labor. O O

Exports and Imports 800 700 600- 500- 400 300 1 200 100 1970 1980 1990 Year Exports Imports 2000 Figure 5.3 Exports and Imports in the Country of Macroland According to the economy in Figure 5.3, net exports Did not impact GDP from 1990 to 2000 because exports were greater than imports. Were a negative number from 1970 to 1985. Made a positive contribution to GDP from 1970 to 1985. O Were a negative number from 1990 to 2000.

estion 6 Real GDP is best described as: A measure of a nation's output and employment holding wages constant. A measure of a nation's output at the current level of prices. A measure of a nation's prices holding output constant. 0 0.0 о A measure of a nation's output holding prices constant. A measure of a nation's prices at the current level of output. L Moving to the next question prevents changes to this answer. .:: JUL 19 tv 10 2

The first table describes an economy's labor market in 2014 and the second table describes its production function in 2014. Suppose that labor productivity increases in 2014. The increased labor productivity. supply of labor. OA. increases; increases OB. increases; does not change O C. does not change; decreases O D. does not change; increases the demand for labor and the Real wage rate (2009 dollars per hour) 80 70 60 50 40 30 20 Labor hours 15 20 25 30 35 40 45 50 Labor hours supplied 55 50 45 40 35 30 25 Labor hours demanded 15 Real GDP (2009 dollars) 1,425 1,800 2,125 2,400 2,625 2,800 2,925 3,000 8885799 20 25 30 35 40 45

Real GDP is best described as: A measure of a nation's output and employment holding wages constant. A measure of a nation's output holding prices constant. A measure of a nation's output at the current level of prices. OOOO. A measure of a nation's prices holding output constant. A measure of a nation's prices at the current level of output. A Moving to the next question prevents changes to this answer. E JUL 19 tv 10 O A