To find:
Reason for poorer households in C and I compared to U.S. even when the growth rate is higher than the U.S.
Explanation of Solution
China and India have higher growth rates compared to America. However, the households in China and India are far poorer compared to American family. This is because of difference in population growth. The more the population growth is, the more the number of households are.
America has limited population, so the benefit of
Real GDP is the value of goods and services produced in an year adjusted through inflation and divided by the population level of an economy.
Chapter 37 Solutions
Krugman's Economics For The Ap® Course
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education