EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 24, Problem 5DQ
To determine
Economic investment.
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Students have asked these similar questions
4. Other things equal, what effect will each
of the following changes independently
have on the equilibrium level of real
GDP in a private closed economy?
LO11.5
a. A decline in the real interest rate.
b. An overall decrease in the expected
rate of return on investment.
c. A sizable, sustained increase in stock
prices.
3. The world was growing at a constant
growth of 0.00007% rate between 100,000
BC and 1750AD. If birth rates per thousand
averaged 35 during this period , what was
the average death rate in equilibrium.
(approximately)
O 31
35
40
8. Which of the following statements is
correct?
A model is an exact representation of what
goes on in the economy.
Equilibrium in GDP growth rate is when the
growth rate is zero.
A model is an economic relationship that is
only represented by mathematics.
Equilibrium is a self-perpetuating situation
that does not change, unless a force for
change is introduced from the outside and
alters the basic data describing the
situation.
9. According to Malthus, which of the
following are the not the causes of
diminishing average product of labor?
Environmental effects of over-cultivation
(e.g. increased carbon emissions)
Increase in population growth rate
More labour is devoted to a fixed quantity
of land.
The new land brought into cultivation is of
inferior quality…
Manipulate the graph to show what will happen to supply and
demand in the market for loanable funds when the
government budget deficit increases, changing the
equilibrium quantity of loanable funds by 3
percentage points.
Ceteris paribus, what is the new interest rate?
interest rate:
Ceteris paribus, private investment would
increase.
not change.
decrease.
%
20
10
9
Supply
8
Interest rate (%)
7
CO
5
LO
3
2
1
0
0
2
Demand
4 6 8 10 12 14 16 18 20 22 24 26 28
Quantity of loanable funds (% of GDP)
Chapter 24 Solutions
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