Consider an Economy Where Factor Supply Is 2

question 45

Multiple Choice

Consider an economy where factor supply is 2.5 million units, the factor utilization rate is 0.85 and a simple measure of productivity (GDP per factor employed) is $200. This economy's GDP is

• A)$2.125 million
• B)$425 million
• C)$200 million
• D)$500 million
• E)$525 million

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