In the economy of Game of Thrones, the economy produces 500 units of swords, 1,000 units of arrows, and 200 units of archery bows in 2012. In 2012, swords cost $2, arrows cost $4, and archery bows $2. In 2013, the economy of Game of Thrones produced 600 units of swords, 900 units of arrows, and 300 units of archery bows in 2013. Each costs $2.50, $5, and $1 in 2013.
Base year is 2012.
Which of the following is not correct?
Question
options:
a) Nominal GDP in 2013 is $6,300.
b) The growth rate of real GDP 2012-2013 is 1.67%.
c) GDP deflator (GDP Price Index) in 2013 is 116.67.
d) Real GDP in 2013 is $5,400.
The four components of planned aggregate expenditure are:
A. spending on domestic goods, domestic services, foreign goods, and foreign services
B. spending on durable goods, inventory investment, government debt, and net exports
C. consumption, planned investment, government transfers, and net interest
D. consumption, planned investment, government purchases, and net exports
Dave's Mirror Company expects to sell $1,000,000 worth of mirrors and to produce $1,250,000 worth of mirrors in the coming year. The company purchases $300,000 worth of new equipment during the year. Sales for the year turn out to be $900,000. Actual investment by Dave's Mirror Company equals ___ and planned investment equals ___.
A. 250,000; 150,000
B. 300,000; 200,000
C. 550,000; 450,000
D. 650,000; 550,000
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