In 2014, GDP was $12 million and the price of the market basket was $40. In 2020, GDP was $15 million and the price of the market basket was $90. Looking at this data, can we conclude that the production level of this country was higher in 2020? Why? Or Why not?

In 2014, GDP was $12 million and the price of the market basket was $40. In 2020, GDP was $15 million and the price of the market basket was $90. Looking at this data, can we conclude that the production level of this country was higher in 2020? Why? Or Why not?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 32P: In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million....

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Question

In 2014, GDP was $12 million and the price
of the market basket was $40. In 2020,
GDP was $15 million and the price of the
market basket was $90. Looking at this
data, can we conclude that the production
level of this country was higher in 2020?
Why? Or Why not?

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