EBK BRIEF PRINCIPLES OF MACROECONOMICS
EBK BRIEF PRINCIPLES OF MACROECONOMICS
8th Edition
ISBN: 8220103600552
Author: Mankiw
Publisher: CENGAGE L
Question
Book Icon
Chapter 7, Problem 1CQQ
To determine

Real GDP growth in the U.S.

Expert Solution & Answer
Check Mark

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b)

In the United States over the past century, average income measured by real GDP per person has grown by about 2 percent per year and this rate of growth implies that average income doubles every 35 years and hence, because of this growth, most of the Americans enjoy much greater economic prosperity than before. Thus, option ‘b’ is correct.

Option (a)

The rate of growth of 2 percent in the U.S. economy over the past century implies that average income doubles every 35 years and not in every 14 years. So option ‘a’ is incorrect.

Option (c)

Over the past century, in the U.S., real GDP per person has grown by 2 percent which means it doubles every 35 years. So option ‘c’ is incorrect.

Option (d)

Over the past century, in the U.S., real GDP per person has grown by 2 percent and not by 5 percent. Hence option ‘d’ is incorrect.

Economics Concept Introduction

Concept Introduction:

GDP (Gross Domestic Product): Gross domestic product refers to the value of total goods and services produced in the given period of time within the boundaries.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Explain what is Microeconomics?  Why is it important for all of us to understand what are the drivers in microeconomics?
The production function for a product is given by Q =100KL.if the price of capital is 120 dollars per day and the price of labor 30 dollars per day what is the minimum cost of producing 1000 units of output ?
خصائص TVA
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Macroeconomics
Economics
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Survey of Economics (MindTap Course List)
Economics
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Cengage Learning
Text book image
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Text book image
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning