Some of the observed 15 increase represents an

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Unformatted text preview: se in quality. No. The true value of your decision to work should be less than $22. If you choose to work, the economy produces the value of your work plus a takeout meal. If you choose not to work, presumably the economy produces a homecooked meal. The extra output arising from your choice to work is the value of your work plus any difference in value between takeout and home-cooked meals. In fact, however, the value of home-cooked meals is not counted in GDP. (Of course, there are other details. For example, the value of groceries used to produce home-cooked meals would be counted in GDP. Putting such details aside, however, the basic point is clear.) Explore Further 10. a. The table below has the data Earlier recession Date 1999.1 1999.2 1999.2 1999.4 2000.1 2000.2 2000.3 2000.4 2001.1 2001.2 2001.3 2002.4 GDP growth 0.890595 0.781715 1.272143 1.795443 0.261704 1.950406 0.084453 0.592452 -0.32848...
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