Author Question: Refer to Figure 24-4. In the figure above, AD1, LRAS1 and SRAS1 denote AD, LRAS and SRAS in year 1, ... (Read 201 times)

lidoalex · **on:** Jun 29, 2018

Refer to Figure 24-4. In the figure above, AD1, LRAS1 and SRAS1 denote AD, LRAS and SRAS in year 1, while AD2, LRAS2 and SRAS2 denote AD, LRAS and SRAS in year 2.

Given the economy is at point A in year 1, what is the actual growth rate in GDP in year 2?
A) 2.5 B) 7.3 C) 8.0 D) 10.0

Question 2

You're traveling in Ireland and are thinking about buying a new digital camera. You've decided you'd be willing to pay 125 for a new camera, but cameras in Ireland are all priced in euros.

If the exchange rate is 0.85 euros per dollar, what's the highest price in euros you'd be willing to pay for a camera?
A) 105 euros B) 106.25 euros C) 110.15 euros D) 147 euros