Refer to the figure below and assume that the values for points a, B. are $10 billion, $20 billion, and $16 billion, respectively. Capital goods с Economic growth Optimal output combination 0 D Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point b over a 7-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point c at the end of the 7-year period, by what percentage did it fall short of its production capacity? percent

Refer to the figure below and assume that the values for points a, B. are $10 billion, $20 billion, and $16 billion, respectively. Capital goods с Economic growth Optimal output combination 0 D Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point b over a 7-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point c at the end of the 7-year period, by what percentage did it fall short of its production capacity? percent

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of these is NOT a factor of economic growth? decrease in the savings rate O investment in human capital increase in the size of the labor force O increase in the capital stock
Which one of the following is not true for the process of long-run economic growth? A) Societies endowed with higher levels of human capital grow faster in the long run. B) Societies that save a larger fraction of national income are richer in the long run. C) In economies with a larger number of firms, the economy grows faster in the long run. D) Fertility is both a consequence and a cause of long-run economic growth.
Suppose in the economy in question 4) there is an increase in the saving rate from 6% up to 10%.Briefly explain how this will affect the following variables in the steady-state.capital per workera)b)investment per workerc)growth rate of output per workerd)growth rate of output
Suppose the people in a certain economy decide to increase saving and add more to their stock of human or physical capital. Explain the prospects for growth of such an economies using three panel graphs.
Using the appropriate diagram, show and explain the effect of the increase in income taxes on the equilibrium in the money market.
What is the likely effect of increasing public investment in higher education on a country's long-term economic growth? A. It will lead to a decrease in economic growth due to higher taxes. B. It will have no effect on economic growth. C. It will lead to higher long-term economic growth due to an improved labor force. D. It will initially boost economic growth but lead to a decline in the long run.
In 2018, India was the world’s seventh largest economy, with a $2.69 trillion GDP (as measured in U.S. dollars). India was also one of the world’s fastest-growing economies, with an annual growth rate of real GDP of 7.3%. a. If the country maintains the same growth rate, how many years will it take for India’s GDP to double? b. Bangladesh’s GDP was $286.27 billion, but its growth rate was equal to India’s. How many years will it take for Bangladesh’s economy to double? c. Although Bangladesh and India have the same annual growth rate, their economies are much different in size. How can you explain the size difference to someone who is unfamiliar with scaling large numbers? Which strategies would you use?
A. Investment in "infrastructure" represents spending on: O roads, bridges, canals, etc. O human capital (education) O government institutions O innovation to physical capital B. Which of the following was not one of Thomas Malthus' assumptions regarding population and economic growth? O Per-capita income would increase. O The economy was agriculturally based O The supply of land was fixed O The population would continue to increase
_____ would most likely result in the economic growth of a nation. A. A decrease in the productivity of labor B. A decrease in the supply of labor due to emigration C. A decrease in the stock of physical capital D. An increase in the rate of growth of population E. An increase in the productivity of labor
2. You are a manager at a large shampoo company and on the search for future markets. You identified two low income countries that look very dynamic: Country A has a GDP/capita growth rate of -1% and population growth rate of 9%. Country B has a GDP/capita growth rate of 7% and constant population. (a) Discuss which country you should focus on for your expansion. (b) Discuss if your answer would change if the products you are trying to sell are cars.
If X grows at a rate of 9% a year, and Y grows at a rate of 14 percent per year, what is the growth rate of X/Y? a. 23% b. -5% c. 5% d. (9/14) % A nation’s population is growing 5% per year, and its total GDP is growing 1% per year. What is the annual rate of growth of GDP per capita? Feel free to round to the nearest percentage point:.