Economics_Ch11

# Explain total dollar expenditure market basket total

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Unformatted text preview: 12 Y (a) (a) \$120 \$120 \$12 \$12 (d) (d) unemployed persons falls? Explain. Total dollar expenditure market basket Total dollar expenditure on market basket in current year = (e) (e) Doing the Math Total dollar expenditure market basket base Total dollar expenditure on market basket in base year = (f ) (f Do the calculations necessary to solve the following problems. 1. Using the following data, compute the GDP: consumption \$3. 2 trillion; government purchases \$1.2 trillion; export spending \$1.9 trillion; import spending \$1.8 trillion; and investment \$1.5 trillion. 2. A tiny economy produces 10 units of good X and 15 units of good Y. Base-year prices for these goods are \$1 and \$2, respectively. Currentyear prices for these goods are \$2 and \$3. What is the CPI? 3. Using the data in question 2, what does real GDP equal? 4. In Exhibit 11-8, change the prices in column 2 to \$14 for CDs and \$6 for T-shirts. Change the prices in column 4 to \$17 for CDs and \$8 for T-shirts. Now calculate the CPI. 5. The CPI is 143 in ye...
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