ECC1100
1.In country A, Tim bought a car for $40,000 in 2018. This
transaction would lead to a $40,000 increase in country A’s GDP in 2018.
(Explain whether you agree or disagree with the statement. Give TWO reasons.)
2.If the price of bread increases by 10%, you will be necessarily worse off. Explain whether you agree or disagree with the statement.
(What are the assumptions behind your arguments?)
3.Explain the effect of an increase in participation rate on unemployment rate.
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