Table 8-18 a Very Simple Economy Produces Three Goods: Cameras,legal

question 258

Multiple Choice

Table 8-18
A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above.
-Refer to Table 8-18.What is real GDP in 2013,using 2013 as the base year?

• A)$28,885
• B)$11,790
• C)$11,200
• D)$10,275

---

Definitions:

Phillips Curves

The economic theory suggesting an inverse relationship between inflation and unemployment rates over the short-term.

Expected Inflation

The rate of inflation that consumers, businesses, and investors anticipate will occur in the future, which can influence economic behavior in the present.

Phillips Curve

An economic theory that suggests an inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Sacrifice Ratio

A measure of the economic costs of reducing inflation, often represented by the loss of output or employment.