Question: please answer the following questions based on ap microeconomics Question 3 W Include correctly labeled diagrams, if useful or required, in explaining your answers. A

please answer the following questions based on ap microeconomics

please answer the following questions based on ap microeconomics Question 3 W

Question 3 W Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. The data below are from the economies of Bonvampton and Karbandia. Bonvampton Karbandia GDP Nominal GDP Nominal Year Population Year Population Deflator GDP Deflator GDP 1 10 100 $400 20 100 $800 2 10 110 $330 2 20 120 $720 (a) Calculate each of the following for Year 2. Show your work. (i) Real GDP per capita for Bonvampton (ii) Real GDP per capita for Karbandia (b) If Bonvampton and Karbandia have the same velocity of money in Year 2, which economy must have the higher money supply in Year 2 ? Explain. (c) Calculate each of the following in Year 2. Show your work. (i) The inflation rate in Bonvampton (ii) The inflation rate in Karbandia (d) Based on your answer to part (c), if the nominal interest rate is the same for both economies in Year 2, which economy experiences the higher real interest rate in Year 2 ? Explain. (e) Assume that in Year 1 Karbandia is operating inside its production possibilities curve and that Karbandia's production possibilities curve remains unchanged from Year 1 to Year 2. As a result of the change in real GDP from Year 1 to Year 2, does Karbandia's economy move closer to or farther away from its production possibilities curve? Explain using numbers for real GDP and state what will happen to cyclical unemployment in the short run

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