Economics, 20th Edition, Northern Virginia Community College
18th Edition
ISBN: 9781307172218
Author: McConnell
Publisher: McGraw Hill Education
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Chapter 26, Problem 4RQ
To determine
Given scenario and economic growth .
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QUESTION 11
Using the Rule of 70, a country will roughly double its GDP in thirty-five years if its annual growth rate is
However, if its annual growth rate is 5%, its GDP will roughly double in
O 2 percent; 14 years
O 7.5 percent; 10 years
O 3.5 percent; 5 years
O 2.5 percent; 25 years
6. LO 2 Suppose that z, the marginal product of efficiency units of labour, increases in the
endogenous growth model. What effects does this have on the rates of growth and the
levels of human capital, consumption, and output? Explain your results.
- Suppose that work hours in New Zombie
are 200 in year 1, and productivity is $8
per hour worked. What is New Zombie's
real GDP? If work hours increase to 210
in year 2 and productivity rises to $10
per hour, what is New Zombie's rate of
economic growth? LO8.4
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Economics, 20th Edition, Northern Virginia Community College
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- Last year real GDP in the imaginary nation of Olympus was 445.0 billion and the population was 2.2 million. The year before, real GDP was 390.0 billion and the population was 2.1 million. What was the growth rate of real GDP per person during the year? 14.1 percent O 0.09 percent O 1.09 percent 8.9 percentarrow_forwardA country has $60 million of saving and domestic investment of $40 million. Net exports are 1.O -$100 million. 2. O $100 million. 3. O -$20 million. 4. O $20 million. Purchasing-power parity implies that the nominal exchange rate given as foreign currency per unit of domestic currency must rise if the price levels in 1.O both countries fall. 2. O foreign countries rise. 3. O both countries rise. 4. O the domestic country rises. If purchasing power parity holds, the real interest rate is 1.O P/P* 2. O equal to 0 3. O equal to 1 4. O equal to nominal interest rate Consider a following closed economy. Y = 10,000 C = 6,000 T = 1,500 G = 1,700 The economists also estimate that the investment function is; | = 3,000 – 100r Obtain the value of Public saving: Private saving: Investment: real interest rate (r):arrow_forwardThe GDP at Q101 is 250600 and the GDP at Q102 is 260700. What is the total GDP growth between Q101 and Q102? Select one: O a. 4% O b.2.9% O C8.27% O d. None O e. 6.15%arrow_forward
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