ECON 4710 Chapter : Hw1Ans
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Homework assignment 1 answer key: understanding the growth rate and how to measure it. (10 points) Growth is slowest in the 2001. ( for each part, accept answers shift up by 1 row. For example, list growth rate in 1995 instead of 1996 as 2. 69. ect. : working with the data (10 points) There is not much difference between gdp and gnp: (30 points) Consider an economy that produces only two goods: oil and gasoline. In this economy, the technology of producing gasoline involves using oil as an input. Olive"s oil is the only company that produces oil, while george"s gasoline is the only producer gasoline. The relevant revenue and cost information for each of the two firms in the economy is given below: Calculate nominal gdp using (a) the expenditure approach (b) the production (value added) approach, and (c) the income approach and show that all three give the same answer.
