a.
Lower real
a.
Explanation of Solution
Country Z will have lower real GDP in 2017 as per the data given as it has a negative average annual growth rate of real GDP i.e. -0.1% in 2016.
Real GDP: Real Gross Domestic Product refers to the measure that determines the value of goods and services which are produced in the country within a specific time frame after adjusting for inflation.
b.
The largest increase in real GDP in 2017 if the growth rate continues.
b.
Explanation of Solution
The largest real GDP of any country cannot be predicted as the largest value of real GDP in the future cannot be determined based on given Information. Thus, the information provided is insufficient for determining the country with the largest real GDP.
Real GDP: Real Gross Domestic Product refers to the measure that determines the value of goods and services which are produced in the country within a specific time frame after adjusting for inflation.
c.
The country whose real GDP will at least double in the next 10 years if the growth rate continues.
c.
Explanation of Solution
The country name whose real GDP will double in the next 10 years if its growth rate will continue for the next 10 years in country C. This is because a country must have an average annual growth rate of 7% to get its real GDP to double in the next 10 years and country C has the highest growth rate i.e. 8.6%.
Real GDP: Real Gross Domestic Product refers to the measure that determines the value of goods and services which are produced in the country within a specific time frame after adjusting for inflation.
Chapter 37 Solutions
Krugman's Economics For The Ap® Course
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