Use the Following to Answer Questions: Table: Wheat and Corn

question 308

Multiple Choice

Use the following to answer questions: Table: Wheat and Corn $$\begin{array} { l c c c c } \hline \text { Year } & \begin{array} { l } \text { Price of Wheat } \\\text { (per bushel) }\end{array} & \begin{array} { c } \text { Quantity of Wheat } \\\text { (million bushels) }\end{array} & \begin{array} { l } \text { Price of Corn } \\\text { (per bushel) }\end{array} & \begin{array} { l } \text { Quantity of Corn } \\\text { (million tons) }\end{array} \\\hline 2005 & \$ 56 & 1,250 & \$ 44 & 940 \\2006 & 64 & 1,360 & 52 & 1,050 \\2007 & 72 & 1,420 & 55 & 1,120 \\2008 & 80 & 1,500 & 62 & 1,260 \\\hline\end{array}$$
-(Table: Wheat and Corn) Consider a country that produces only wheat and corn. Based on the data in the table, the growth rate of real GDP from 2007 to 2008 (in 2005 dollars) is:

• A) 8.3%.
• B) 15.7%.
• C) 25.2%.
• D) 27%.

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Definitions:

Fed

The central banking system in the United States, known as the Federal Reserve System, is tasked with overseeing monetary policy.

Government Bonds

Securities issued by a government to raise funds from the public, promising to pay back with interest at a future date.

Excess Supply

A situation where the quantity of a good or service that is available surpasses the quantity demanded at a current price, often leading to a price decrease.

Value of Money

The purchasing power of money, which can be affected by inflation and economic conditions.