Question

Question 2 only

services the market value of all goods and services consumed within the count goods and services the total value-added by all producers operating within the coun b) and households on domestically produced final d) The following data is for country A, which produces only guns and bu 2013 2014 Quantity Price Price 3 $2 each. Guns Butter 2 kg 4k Using 2013 as the base year, which of the following is correct? a) Between 2013 and2014, country As real,GDP gr b) Between 2013 and 2014/country As nominal GDP grew by 30%. o) Country A's GDP deflator in 2014 was 100, meaning averall prices didn't change ewby 35% from 2013 dy The real value of final goods and services produced in Country A increased by 30%. 3. According to the principle of diminishing returns to labour, if the amount of capital and er inputs are held constant, employing additional workers a) increases output at an increasing rate b) increases output at a constant rate c) increases output at a decreasing rate d) decreases output at an increasing rate

Answer 1

Correct option for question 2 is D) The real value of Final goods and services produced in country A increased by 30 %

In 2013 Real value of Final G and S = Price_​​2013× Quantity ₂₀₁₃

= 12+ 8

= 20

In 2014 value of final G and S taking 2013 base = P_{​​​​​​2013×}Q₂₀₁₄

= 10+16

=26

Increased by ( 26-20/20)× 100

= 30 %