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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
2002.4 GDP growth
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This note was uploaded on 01/29/2014 for the course ECON 110A taught by Professor Staff during the Winter '08 term at UCSD.
- Winter '08