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# Questions & Answers Ex. 2-4 - Exercise 2A Q Can you...

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Exercise 2A Q Can you please explain the answers to parts d and e? A Part b GDP2000 = 500*1+2000*1=2500 GDP2001 = 600*1+1900*1=2500 (the paragraph below the table states that: “Assume that in the year 2001 the prices of the two goods remained as they were in the year 2000” Chang in GDP = (GDP2001-GDP2000)/GDP2000 = (2500-2500)/2500=0 Part d GDP2000 = 500*2+2000*1=3000 GDP2001 = 600*2+1900*1=3100 (the paragraph below the table states that: “Assume that in the year 2001 the prices of the two goods remained as they were in the year 2000” Chang in GDP = (GDP2001-GDP2000)/GDP2000 = (3100-3000)/3000=0.033333 Exercise 2B Q I don't understand page 8 of the solution. How did they get the numbers 115, 185, 385 and 615? Are they just assumptions to tell us that the flour mill is divided in 2 parts A What is important is that 1000 of flour were used for baking, and 300 sold to consumers. Disregard the break-up of these numbers in the solution. Q I don't understand page 8 of the solution. How do they arrive at all these numbers in the table of the private sector, the one for entrepreneurs? A

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Questions & Answers Ex. 2-4 - Exercise 2A Q Can you...

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