1. Below are some data from the land of milk and honey. Year Pmilk (RM) Qmilk (Litre) Phoney (RM) Qhoney (Litre) 2018 2.5 105 4.5 50 2019 2.5 205 5.5 100 Compute nominal GDP, real GDP, and the CPI for...

1. Below are some data from the land of milk and honey.<br>Year<br>Pmilk (RM)<br>Qmilk (Litre)<br>Phoney (RM)<br>Qhoney (Litre)<br>2018<br>2.5<br>105<br>4.5<br>50<br>2019<br>2.5<br>205<br>5.5<br>100<br>Compute nominal GDP, real GDP, and the CPI for each year, using the earlier year as the<br>base year.<br>2. Diagrammatically represent and explain the short-run effect of each of the following on<br>the price level and on Real GDP:<br>a. The dollar depreciates relative to foreign currencies.<br>b. A decrease in the price of a non-labor resource.<br>3. Diagrammatically represent and explain what happens if the economy is at its long-run<br>equilibrium and short-run aggregate supply decreases?<br>

Extracted text: 1. Below are some data from the land of milk and honey. Year Pmilk (RM) Qmilk (Litre) Phoney (RM) Qhoney (Litre) 2018 2.5 105 4.5 50 2019 2.5 205 5.5 100 Compute nominal GDP, real GDP, and the CPI for each year, using the earlier year as the base year. 2. Diagrammatically represent and explain the short-run effect of each of the following on the price level and on Real GDP: a. The dollar depreciates relative to foreign currencies. b. A decrease in the price of a non-labor resource. 3. Diagrammatically represent and explain what happens if the economy is at its long-run equilibrium and short-run aggregate supply decreases?

Jun 09, 2022

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1. Below are some data from the land of milk and honey. Year Pmilk (RM) Qmilk (Litre) Phoney (RM) Qhoney (Litre) 2018 2.5 105 4.5 50 2019 2.5 205 5.5 100 Compute nominal GDP, real GDP, and the CPI for...

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