In 2009 the countrys toy factories produced 5 million toys


Suppose we are looking at an economy that produces only toys. In 2009 the country's toy factories produced 5 million toys, which it sold on the international market for $10 per toy. In 2010 the country produced 6 million toys, which it sold for $12 per toy.

Instruction: Enter your responses as whole numbers.

a) The percentage increase in the production of toys from 2009 to 2010 was________ %.

b) The gross domestic product of this economy in 2009 was $_________ million.
The gross domestic product in 2010 was $_________ million. (Remember that GDP is the monetary value of the economy's output, valued at the market price.)

c) The percentage increase in nominal GDP from 2009 to 2010 was__________ %.

d) Assume that the rate of inflation was equal to the rate of change of the price of toys. The growth rate of the economy from 2009 to 2010 was__________ %.

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Business Economics: In 2009 the countrys toy factories produced 5 million toys
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