Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 1RQ
To determine
Required number of years to make the GDP double.
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Suppose A, B and C are quantities that change over time. It can be shown that if A = BC then the percent growth in A equals the percent growth in B plus the percent growth in C. Suppose that GDP grows at 6% and population grows at 2%. Then what percent does GDP per person grow at?
Calculate the growth rate of real GDP, population, and real per capita GDP from year 2 to year 4.
The table shows real GDP and population, both in billions. Give answers to twodecimal places.
Year 1 Year 2 Year 3 Year 4 Year 5Real GDP 6,500 6,750 7,110 7,260 7, 622Population 0.250 0.253 0.256 0.258 0.262
If real GDP was $9,950 billion in Year 2008 and $10,270 billion in Year 2009. What was the rate of economic growth in 2009?
1.6 percent
2.4 percent
3.2 percent
4.3 percent
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- An economy starts off with a GDP per capita of 5,000. How large will the GDP per capita be if it grows at an annual rate of 2 for 20 years? 2 for 40 years? 4 for 40 years? 6 for 40 years?arrow_forwardWhat are three generators of economic growth? List and explain them. What are three determinants of business investment? List and explain themarrow_forwardThe real GDP in 2010 was $1,800 billion and $1,944 billion in 2011.What is the growth rate in real GDP measured in percentage change? Question 9Answer a. 6% b. 7% c. 5% d. 8%arrow_forward
- Refer to Table 4.3 “The Model’s Prediction for Per Capital GDP” on page 83. Why is the “observed per capita GDP” in the last column 1.000 for the U.S.? A. The U.S. per capita GDP was $1,000 in real terms for the year given in the table B. It means the U.S. economy produces 100% of what it’s supposed to produce C. It means the U.S. economy uses 100% of all available capital in the country D. U.S. values are set, or normalized, to 1 while the other countries’ values are all relative to the U.S. valuesarrow_forwardPlease refer to the table to answer the question. Year Real GDP 1 $ 400 million 2 $ 425 million Using the rule of 72, this economy’s real GDP will double in 6.25 years. 2.88 years. 8.68 years. 11.52 years.arrow_forwardLast year, real GDP per person was $4,200. The year before it was $4,000. By what percentage did real GDP per person grow during the period? a. 200 percent b. 10 percent c. 5 percent d. 50 percent.arrow_forward
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