Question

Part 1 (1 point) See Hin Now, suppose the city is picked to host the Olympics, and it starts to make investments to get ready, causing the city to operate along F1. Consider several possible choices available to the city about how much investment it should make. All of these choices will place the city's economy along F1 First, suppose the city decides to keep its level of capital at K1. In this case, the investments directed toward preparing for the Olympics simply displace other investments that would have occured. The city's real GDP will be (real GDP) (capital)

Answer 1

We must keep in mind that economy is operating on F And on E k level of capita puts economy at point a' K2 level of capital puts economy at point "e and Kz level of capital puts economy at point d. And output coresponding to points a cand'd are yo, Yz and Ya respectively. So correct answers are - part u Part 2 a real GDP will be ] (Point 'a') a real cop will become [12] point le ) real app will be [44] (Point & Part 4 At point 't real GDP is (%) = % part 3

On F, real GDP at an investment level of Kz is (Y) = V2 and on F, real lide at an investment ولا = (۶) انواع خال Clearly, Y > Ye and Yo <Y Y< Y CY correct answer So is option (A).