Study Econ 120/102 HW CH10. 11.

b. The average annual growth rate in real GDP per capita between 2010 and 2014 is ___​%. ​(Enter your response rounded to two decimal​ places.)

.95% ((42730-41520)/41520+(42260-42730)/42730+(43495-42260)/42260+(43091-43495)/43495)/4 The average annual growth rate in real​ GDP, ​= (Growth Rate 2011 + Growth Rate 2012 + Growth Rate 2013 + Growth Rate 2014)/ 4 )

if real GDP per capita grows at a rate of 5.4 percent per​ year, it will take ___ years to double. ​(Enter your response rounded to one decimal​ place.)

13.0 years to double Explanation: 70/5.4= 12.96≈13.0

Suppose you had a choice between living in the United States in 1900 with an income of ​$1,059,000 per year or in the United States in 2018 with an income of ​$58,000 per year. Assume the incomes for both years are measured in 2018 dollars. In which year would you have the highest real​ income? ________ In which year would you have the better standard of​ living? ________

1st question- 1900 2nd Question- 2018

Use the data for the country of New Finlandia in the following table to calculate the​ following: YEAR REAL GDP PER CAPITA ​(2005 PRICES) 2010 ​$41,520 2011 42,730 2012 42,260 2013 43,495 2014 43,091 ​(HINT: Remember from the previous chapter that the average annual growth rate for relatively short periods can be approximated by averaging the growth rates of those​ years.) a. The percentage increase in real GDP per capita between 2010 and 2014 is ___​%. ​(Enter your response rounded to two decimal​ places.)

3.78% Growth Rate of real per capita GDP= (Per capita Real GDP2014−Per capita Real GDP2010 / Per capita Real GDP2010) ×100 ((43091-41520)/41520)*100

Real GDP per capita in the country of Arcadia grew from about ​$4,847 in 1900 to about ​$44,329 in​ 2008, which represents an annual growth rate of 2.07 percent. If Arcadia continues to grow at this​ rate, calculate the number of years when its real GDP per capita will double. _____ years.​ (Enter your response as an​ integer.)

34 Years Explanation 70/2.07=33.8≈34

Consider the following data for a closed​ economy: Y​ = ​$12 trillion C​ = ​$7 trillion G​ = ​$3 trillion S public​ = ​$- 0.5 trillion T​ = ​$4 trillion Use the data to calculate the​ following: ​(Enter your responses rounded to one decimal place.​) a. Private saving​ is: ​$ 2.5 trillion. b. Investment spending​ is: ​$ nothing trillion. C) Transfer payments= $ D) Government's Budget Balance= $

A) Private Savings= $2.5 trillion -Explanation -find TR-> Pub. Svg.=$-.5 Pub. Svg.= T-G-TR -$.5 = $4-$3-TR $1.5= TR Pvt.Svg.= Y+TR-T-C B) Investment Spending= $2 -Explanation I=Y-C-G=12-7-3=2 C) Transfer payments=$1.5 -Explanation TR=T-G-Pub. Svg.=4-3-(-.5)=1.5 D) Government's Budget Balance=T-G-TR=3-2-1.5=-$. 5 trillion and​ since, T LESS THAN G+TR​, the budget is in DEFICIT.

Technological progress is affected by ​(check all that​ apply) A. investment in capital B. private property rights C. entrepreneurship D. population growth E. new software developments

A, B, C, E

Which of the following is a reason the U.S. experienced larger economic growth than the Soviet​ Union? ​(Check all that​ apply.) A. The U.S. had a market economy that allowed for greater entrepreneurship to occur. B. The U.S. had a more centrally planned economy allowing the government to direct resources to capital accumulation. C. The U.S. had a greater amount of private property rights. D. The U.S. had a greater amount of spending on physical capital. E. The U.S. had a larger population than the Soviet Union.

A,C A. The U.S. had a market economy that allowed for greater entrepreneurship to occur. C. The U.S. had a greater amount of private property rights.

The country Panjim has been growing at the rate of 8 percent annually following a series of economic reforms.​ Adelphia, a neighboring​ country, is also growing​ rapidly, but at a rate that is slightly lower than​ Panjim's. Elaine Mack and Prisca​ Baresi, who live in​ Adelphia, are discussing whether​ Adelphia's economy will surpass Panjim soon. Elaine is of the opinion that the high level of sales of capital goods indicates that growth in Adelphia will only increase further. Prisca however reminds Elaine that the working population in Adelphia is​ shrinking, which will actually reduce its growth prospects. Elaine claims that the high level of sales of capital goods indicates that growth in Adelphia will only increase further. Which of the following questions is most important to answer in order to determine the accuracy of this​ claim? A. How has the change in​ capital-labor ratio affected​ efficiency? Your answer is correct.B. What proportion of investment in Adelphia is funded by foreign​ capital? C. Does Adelphia manufacture capital goods domestically or import​ them? D. How mature is the market for financial capital in​ Adelphia? E. Is the​ capital-goods industry subsidized by the​ government?

A. How has the change in​ capital-labor ratio affected​ efficiency?

A recent industry report concluded that the global demand for the good X is expected to increase. Based on the demand projections given in the report​ Colaba, a firm that produces and sells​ X, is contemplating hiring more labor to increase production. Maria Williams and Christopher​ Lockhart, both stock market​ analysts, are discussing the prospects of the firm. Maria thinks that Colaba is a good stock to buy because she expects their profits to increase.​ Christopher's opinion differs. He says that an increase in​ Colaba's workforce will only increase the wage bill and reduce its profits. Colaba decided to increase the size of its workforce by 5​ percent, expecting profits to increase.​ However, the​ firm's profits dipped considerably in the next quarter. Which of the following can best explain this​ outcome? A. The government recently lowered import barriers on good X. B. Most households in this country have a high propensity to spend and also have high levels of debt. C. One of​ Colaba's competitors recently filed for bankruptcy following a massive accounting fraud. D. Economic indicators suggest that the economy has completely recovered from a recession that hit them two years back. E. Good X is manufactured using a​ labor-intensive method of production.

A. The government recently lowered import barriers on good X.

The government policy that does not increase economic growth is A. foreign trade policy that favors imposing a high tariff on imported​ high-tech goods. B. incentives to firms in the form of investment tax credits that can take the economy out of a low​ saving-investment trap. C. policy concerning property rights and rules of law that can free the country from corruption and political instability. D. better health and education policies that provide free childhood​ vaccination, water​ purification, and​ K-12 public education.

A. foreign trade policy that favors imposing a high tariff on imported​ high-tech goods.

Recessions cause the inflation rate to​ _________, and the unemployment rate to​ _________. A. ​decrease; increase B. ​increase; increase C. ​decrease; decrease D. ​increase; decrease

A. ​decrease; increase

Andover Bank and Lowell Bank each sell​ one-year certificates of deposit​ (CDs). The interest rates on these CDs are given in the table below for a​ three-year period. Bank 2018 2019 2020 Andover Bank 3​% 6​% 15​% Lowell Bank 8​% 8% 8% Suppose you deposit ​$1,000 in a CD in each bank at the beginning of 2018. At the end of​ 2018, you take your ​$1,000 and any interest earned and invest it in a CD for the following year. You do this again at the end of 2019. At the end of​ 2020, the interest over this​ three-year period at Andover Bank is ​$ ___. ​(Enter your response rounded to the nearest penny​.) At the end of​ 2020, the interest over this​ three-year period at Lowell Bank is ​$___. ​(Enter your response rounded to the nearest penny​.)

ANDOVER= $255.57 [1000×(1+.03)×(1+.06)×(1+.15)]-1000 LOWELL=$259.71 [1000×(1+.08)×(1+.08)×(1+.08)]-1000 equation to use- Interest Earnings=[Principal×(1+i1)×(1+i2)×(1+i3)]−Principal​ i1 being percentage as a decimal or the number/100

Use the graph to help determine which one of the following statements regarding real and potential GDP is true. A. Potential GDP is always less than real GDP. B. Potential GDP increases every year. C. Potential GDP is always equal to real GDP. D. Potential GDP increases in some years and decreases in some years.

B. Potential GDP increases every year.

correct, Critical Thinking 3.1 Firm​ X, a leading manufacturer of rubber tires in country​ A, caters to almost​ one-third of the domestic tire market. The country was hit by a recession last year that caused the national output growth to be negative. Simon​ Reeds, the CEO of firm​ X, feels that these fluctuations in the business environment are​ short-lived and expects the economy to recover very soon. In spite of the​ recession, Simon feels that the firm can actually invest in expanding its facilities as it has sufficient cash flows to continue its operation during the crisis period. The​ firm's marketing​ head, Sandra​ Jones, counters this by saying that the firm is already losing sales due to the recession and they should not increase costs further by making​ large-scale investments in the present climate. Which of the​ following, if​ true, would support the​ CEO's claim? A. Some of firm​ X's competitors have slashed the prices of their products in an attempt to boost sales. B. The government recently announced a plan to offer incentives to buyers in the car and household appliances market. C. Crude oil prices are increasing steadily. D. The tire industry reported good growth in profits until the recession began. E. The government introduced a floor price in the market for natural rubber last year.

B. The government recently announced a plan to offer incentives to buyers in the car and household appliances market.

Purchases of which types of goods are business cycles most likely to​ affect? A. goods the government purchases B. durable goods C. nondurable goods D. services

B. durable goods

The rule of 70 A. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to increase by two hundred percent. B. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to double. Your answer is correct.C. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to quadruple. D. states when an individual can be eligible for full social security benefits.

B. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to double.

At the​ macro-economy level, A. physical capital exhibits increasing returns and knowledge capital exhibits decreasing returns. B. knowledge capital exhibits increasing returns and physical capital exhibits decreasing returns. Your answer is correct.C. both knowledge capital and physical capital exhibit decreasing returns. D. both knowledge capital and physical capital exhibit increasing returns.

B. knowledge capital exhibits increasing returns and physical capital exhibits decreasing returns.

What is the best use of the rule of 70 among those listed​ below? A. to calculate the difference between the growth rate in real GDP and the growth rate in real GDP per capita B. to judge how rapidly real GDP per capita is growing over long time periods C. to forecast the duration of recessions D. to find the average annual growth rate of real GDP

B. to judge how rapidly real GDP per capita is growing over long time periods

Along the​ per-worker production​ function, what happens to real GDP per hour worked as capital per hour worked​ increases? A. Real GDP per hour worked decreases at an increasing rate. B. Real GDP per hour worked increases at a decreasing rate. Your answer is correct.C. Real GDP per hour worked decreases at a decreasing rate. D. Real GDP per hour worked increases at an increasing rate.

B. Real GDP per hour worked increases at a decreasing rate.

Suppose you can receive an interest rate of 7 percent on a certificate of deposit​ (CD) at a bank that is charging borrowers 15 percent on new car loans. Which one of the following choices does not explain why you might be unwilling to loan money directly to someone who wants to borrow from you to buy a new​ car, even if that person offers to pay you an interest rate higher than 7 ​percent? A. Your funds would not be liquid. B. You are better at assessing risks than the usual financial institutions. C. Your risk will be higher when the funds are not diversified among different investment alternatives. D. You have to spend time and incur expense to determine whether or not the borrower is likely to repay the loan.

B. You are better at assessing risks than the usual financial institutions.

What term describes the relationship between real GDP per hour worked and capital per hour​ worked, holding the level of technology​ constant? A. the output growth function B. the​ per-worker production function C. the​ capital-labor function D. the production possibilities frontier

B. the​ per-worker production function

When low income countries begin to experience economic​ growth, they often do so at rates much higher than current growth rates of industrial nations. Which of the following does NOT provide an explanation of this​ phenomenon? A. Low income countries do not usually have large volumes of capital. They can grow from technology improvements and capital​ investment, without facing diminishing returns until they reach much larger levels of income. B. Developing countries may not need to engage in large amounts of​ R&D as they can borrow technologies that have already been developed in industrial nations. C. Industrial countries have higher rates of growth in physical capital and developing countries are not able to invest in large quantities of capital. D. As industrial countries are​ growing, they have high levels of capital and face diminishing returns from investment in capital.

C. Industrial countries have higher rates of growth in physical capital and developing countries are not able to invest in large quantities of capital.

Panel​ (a) shows movements in real GDP for each quarter from the beginning of 1999 through the beginning of 2017. Panel​ (b) shows movements in the sales of motor vehicles and gasoline for the same years. Use the graphs to determine which one of the following statements is​ true: A. The effects of the recession on sales of motor vehicles are approximately the same as the effects on the economy as a whole. B. The effects of the recession on sales of motor vehicles are much less dramatic and​ long-lived than the effects on the economy as a whole. C. The effects of the recession on sales of motor vehicles are much more dramatic and​ long-lived than the effects on the economy as a whole. D. The graphs do not provide enough information to determine how the effects of the recession on sales of motor vehicles compare against the effects on the economy as a whole.

C. The effects of the recession on sales of motor vehicles are much more dramatic and​ long-lived than the effects on the economy as a whole.

Between 1950 and the​ mid-1990s, the United States experienced a much larger increase in the standard of living than the Soviet Union. This difference can be most attributed to the fact that the U.S. A. was more centrally planned than the Soviet Union. B. experienced a greater increase in the amount of population growth. C. had a greater amount of technological change. D. had a much larger amount of capital accumulation.

C. had a greater amount of technological change.

Firms are likely to underinvest in research and​ development, which slows the accumulation of knowledge​ capital, slowing economic​ growth, because A. they can save that money and invest in capital​ accumulation, which is much better for growth. B. knowledge capital is both rival and​ excludable, and no other firms can freely access the research and development of one particular firm. C. knowledge capital is both nonrival and​ nonexcludable; other firms can freely access the research and development of one particular firm. D. research and development are expensive and at the firm​ level, it is subject to increasing returns.

C. knowledge capital is both nonrival and​ nonexcludable; other firms can freely access the research and development of one particular firm.

​Long-run growth in GDP is determined by A. ​technology, investment, and consumption B. labor​ productivity, capital, and government expenditures. C. ​capital, labor​ productivity, and technology. D. ​consumption, investment, and government expenditures.

C. ​capital, labor​ productivity, and technology.

Consider the following data for a closed​ economy: Y​ = ​$12 trillion C​ = ​$8 trillion G​ = ​$2 trillion Spublic​ = ​$- 0.50 trillion T​ = ​$2 trillion Now suppose that government purchases increase from ​$2 trillion to ​$2.75 trillion but the values of Y and C are unchanged. What must happen to the values of S and​ I? A. S and I increase by ​$0.75 trillion. B. S increases by ​$0.75 trillion and I drops by ​$0.75 trillion. C. S and I drop by ​$0.75 trillion. D. S drops by ​$0.75 trillion and I increases by ​$0.75 trillion.

C. S and I drop by ​$0.75 trillion. -Explanation Public Savings= T - G - TR Investment Spending= I=Y-C-G

Suppose you are discussing global trade with a friend who insists a country would be better off by restricting trade and investment with other countries. Which of the following economic responses would be the most logical for your​ discussion? A. I am not sure I agree. Low income countries usually have high levels of foreign direct investment which means they will eventually experience high levels of economic growth. B. I am in agreement with you. Global trade​ doesn't seem to matter to growth rates and countries have greater economic growth when their growth comes from domestic investment. C. I am not sure I agree. Countries that allow more globalization have experienced higher rates of economic growth and typically can utilize greater levels of foreign direct investment to increase economic growth. Your answer is correct.D. I am in agreement with you. Most low income countries allow high levels of trade with other countries. They experience high levels of trade but do not experience high rates of economic growth.

C. I am not sure I agree. Countries that allow more globalization have experienced higher rates of economic growth and typically can utilize greater levels of foreign direct investment to increase economic growth.

As the economy nears the end of an​ expansion, which of the following typically​ occurs? A. Interest rates are usually rising. B. Wages are usually rising faster than prices. C. The profits of firms will be falling. D. All of the above occur.

D. All of the above occur.

The National Bureau of Economic Research​ (NBER), a private​ group, is responsible for declaring when recessions begin and end LOADING.... The Bureau of Economic Analysis​ (BEA), part of the federal​ government, might not want to take on this responsibility. Which one of the following is the most appropriate reason for the​ BEA's refusal? A. Congress has established that its committees should be responsible for dating recessions. B. The BEA does not have as much data as the NBER. C. More economists work for the NBER than do for the BEA. D. Because it is part of the​ government, the BEA could be pulled into politics with the dating of recessions.

D. Because it is part of the​ government, the BEA could be pulled into politics with the dating of recessions.

Consider the choices below. All of these except one truly represent the record of productivity growth in the United States from 1800 to the present. Find the one that does not belong. A. There was a rapid rise in the growth rate of per capita GDP between 1950 and 1973. B. Productivity growth since 2006 has fallen to an even lower rate than during the period of slow growth from the​ mid-1970s to the​ mid-1990s. C. Growth of per capita real GDP slowed down considerably between 1974 and 1995. D. GDP per capita fell rapidly between 1900 and 1950.

D. GDP per capita fell rapidly between 1900 and 1950.

Use the graph to help determine which one of the following statements regarding flucuations in real GDP is​ true: A. The U.S. economy no longer experiences business cycles. B. Real GDP growth never falls below zero. C. During the past 50​ years, the U.S. economy has experienced sharp fluctuations in real GDP similar to what occurred during the early 1930s. D. In the first half of the twentieth​ century, real GDP had much more severe swings than in the second half of the twentieth century.

D. In the first half of the twentieth​ century, real GDP had much more severe swings than in the second half of the twentieth century.

The country Panjim has been growing at the rate of 8 percent annually following a series of economic reforms.​ Adelphia, a neighboring​ country, is also growing​ rapidly, but at a rate that is slightly lower than​ Panjim's. Elaine Mack and Prisca​ Baresi, who live in​ Adelphia, are discussing whether​ Adelphia's economy will surpass Panjim soon. Elaine is of the opinion that the high level of sales of capital goods indicates that growth in Adelphia will only increase further. Prisca however reminds Elaine that the working population in Adelphia is​ shrinking, which will actually reduce its growth prospects. Which of the​ following, if​ true, will weaken​ Prisca's view that Adelphia does not have good growth​ prospects? A. Adelphia is highly dependent on the import of oil and food grains. B. Although inequality in Adelphia has​ fallen, the number of people under the poverty line has not reduced significantly. C. Compared to​ Adelphia, Panjim is better endowed with natural resources. D. The number of​ highly-skilled workers migrating from Adelphia to foreign countries has fallen. E. Nominal wages in Adelphia increased by a smaller proportion than the increase in prices.

D. The number of​ highly-skilled workers migrating from Adelphia to foreign countries has fallen.

The financial system of a country is important for​ long-run economic growth because A. most firms rely on their own retained earnings and do not use the financial system. B. firms that use the financial system predominantly are being reckless. C. people can increase their wealth very quickly under a healthy financial system. D. firms need the financial system to acquire funds from households.

D. firms need the financial system to acquire funds from households.

Evaluate the following​ statement: ​"Saving money is not lending. How can it​ be? When I save my​ money, I put it in a bank. I​ don't loan it out to someone​ else." The statement is A. correct. Depositing money in a bank is​ borrowing, not saving. B. correct. Depositing money in a bank is neither saving nor borrowing. C. incorrect. The supply of loanable funds is determined by​ firms' willingness to borrow. D. incorrect. The supply of loanable funds is determined by household saving.

D. incorrect. The supply of loanable funds is determined by household saving.

Government policy can increase the accumulation of knowledge capital in all the following ways EXCEPT by: A. subsidizing research and development. B. subsidizing education. C. protecting intellectual property with patents and copyrights. D. investing in capital accumulation.

D. investing in capital accumulation.

The computation of the average annual growth rate of real GDP A. involves simply averaging the growth rate for each​ year, but only if data for many years are available. B. is the same for shorter periods of time as for longer periods of time. C. involves computing the percentage change in real GDP between the first year and the last year for the period being examined. D. is more complex when examining data for a long period of time than when examining data for only a few years.

D. is more complex when examining data for a long period of time than when examining data for only a few years.

Along the​ downward-sloping catch-up​ line, a country near the top of the line is A. a rich country growing rapidly. B. a rich country growing slowly. C. a poor country growing slowly. D. a poor country growing rapidly.

D. a poor country growing rapidly.

Which of the following​ contribute(s) to shorter​ recessions, longer​ expansions, and less severe fluctuations in real​ GDP? A. A​ service-based economy B. Fiscal policy C. Social Security benefits D. All of the above E. A and C only

D. All of the above

Following a long period of slow​ growth, the government of country X decided to open its economy and reduce trade barriers in order to boost economic growth. This provided the expected impetus to the economy as competition increased and the efficiency of domestic firms improved. A decade after opening the​ economy, the​ country's GDP is now growing at an average of​ 7-8 percent annually. A group of economists claim that the standard of living of the people has improved substantially during this period. They also expect this impressive growth to continue over the next five years. Which of the​ following, if​ true, will indicate that the standard of living has actually improved since the economy was​ opened? A. High interest rates have attracted a large amount of foreign investment over the last five years. B. The government pegged its currency to a foreign currency three years back. C. Overall exports increased because of a fall in domestic consumption during this period. D. Country​ X's leading trading partner reported a fall in the standard of living over the last two years. E. Discretionary spending by domestic consumers increased during this time.

E. Discretionary spending by domestic consumers increased during this time.

​Narnia, a developed open​ economy, has been experiencing​ double-digit inflation and a decelerating output growth for the last four quarters. Jonathan Mathews and Ben​ Hall, two market​ analysts, are discussing the various measures that can be adopted by the concerned authorities to curb inflation and boost production in the economy. Jonathan thinks that the central bank should raise the nominal interest rate to control inflation.​ This, he​ feels, will also contribute to an increase in the aggregate supply of funds available for investment in the economy. Ben however disagrees. According to​ him, an increase in the nominal interest rate will lower​ investment, leading to a decline in aggregate production by firms.​ This, in​ turn, will increase the shortage in the economy and prices will rise further. When the interest rate was actually​ increased, the aggregate supply of loanable funds in the economy did not increase as much as Jonathon expected. Which of the​ following, if​ true, would explain this​ outcome? A. The consumption of durable goods increased by 12 percent last year. B. Dividend payments by Narnian firms decreased substantially in the last year. C. The wage differential between skilled and unskilled workers in Narnia was very high. D. Narnia is one of the largest exporters of defense equipment in the world. E. The government budget deficit increased by​ $10 billion this year.

E. The government budget deficit increased by​ $10 billion this year.

More people in​ high-income countries than in​ low-income countries tend to believe that rapid rates of economic growth are not desirable. Recall the concept of a​ "normal good." Some people in ___-income countries are ____ with certain consequences of rapid economic​ growth, such as global warming.

High, concerned

At the end of​ 2020, you will have earned more on your ___ Bank​ CD, because A. the average rate of interest charged by Andover is less than the average rate of interest charged by Lowell. B. Lowell Bank uses compound interest​ calculation; Andover does not. C. even a modest increase in the interest rate compounded over time will make the earnings higher. Your answer is correct. D. it all depends on which bank has the higher interest rate in the beginning.

LOWELL, C. even a modest increase in the interest rate compounded over time will make the earnings higher.

onsider the following data for a closed​ economy: Y​ = ​$14 trillion C​ = ​$9 trillion I ​= ​$1 trillion TR​ = ​$1 trillion T​ = ​$3 trillion Use the data to calculate the following. ​(Enter your responses as​ integers.) a. Private​ saving: ​$____ trillion. b. Public​ saving: ​$____ trillion.

Private Saving= $3 trillion -Explanation -Private Savings= (Y + TR)- (C + T) OR -Private Savings= Y + TR - T - C Public Savings= $ -2 -Explanation -Public Savings= T - G - TR Government Purchases= $4 -Explanation -Government Purchases= G = Y - C - I Government's Budget Balance= $ -2 -Explanation - Gov. B.B.= T - G - TR Since T LESS THAN G + TR, the gov. budget is in DEFICIT

In a closed​ economy, the values for​ GDP, consumption​ spending, investment​ spending, transfer​ payments, and taxes are as​ follows: Y​ = ​$15 trillion C​ = ​$10 trillion I​ = ​$4 trillion TR​ = ​$1 trillion T​ = ​$4 trillion Using the information​ above, what is the value of private saving and public​ saving? A. Private saving equals ​$10 trillion and public saving equals ​$4 trillion. B. Private saving equals ​$2 trillion and public saving equals ​$2 trillion. C. Private saving equals ​$2 trillion and public saving equals ​$1 trillion. D. Private saving equals ​$4 trillion and public saving equals ​$10 trillion.

Pvt Svg=2 Pub Svg=2 -Explanation Private Savings= Y + TR - T - C= 15+1-4-10=2 Public Savings= T - G - TR= 4-1-1=2 Government Purchases= G = Y - C - I= 15-10-4= 1

Chinese businesses switch to an improved inventory method that increases output per worker worked. This will cause a ___ ​China's per-worker production function.

Shift of

Dan Demaar and Rob Runten are working on a class assignment on economic growth. Dan collects the GDP growth data for the country​ Fanez, which is located in the Middle East. He states that the standard of living in Fanez must have increased remarkably over the past ten years because it has a total GDP of​ $1,049 million, which is twice its GDP ten years back. Rob does not fully agree that the situation has improved substantially over these 10 years. He looks at the data and points​ out, that growth in Fanez was in fact very slow during this time. Its annual growth​ rate, while always​ positive, never exceeded 1.2 percent. Which of the​ following, if​ true, is likely to strengthen​ Dan's argument? A. Although the number of people enrolling in school has​ increased, fewer students are graduating from high school. B. The population density in​ Fanez, as measured by number of persons per square​ mile, has reduced in the last 15 years. C. At least one in eight individuals in Fanez currently receives unemployment benefits from the government. D. While immigrants constituted only 5 percent of​ Fanez' population 10 years​ back, they currently form 36 percent of the total population. E. The pace of urbanization in Fanez is very slow. the effect of compounding over the ten years

The population density in​ Fanez, as measured by number of persons per square​ mile, has reduced in the last 15 years.

Consider the graph on the right to answer the following​ questions: a. The shift from S1 to S2 represents _____ in the supply of loanable funds. b. With the shift in​ supply, the equilibrium quantity of loanable funds ___. c. With the change in the equilibrium quantity of loanable​ funds, the quantity of saving ___ and the quantity of investment ___.

a. decreases b. decreases. c. decreases, decreases

The average annual growth rate is the ___ between 2007 and​ 2017, and the total percentage increase in real GDP is the

rate at which GDP must grow on average each year percentage increase in real GDP between the two years 2007 and 2017