Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita […]
Date: September 2nd, 2020
Refer to the above table. If an economy’s current per capita real GDP is $3,000, and if its economy grows at an constant annual rate of 5 percent for 50 years, what will be its per capita real GDP at the end of that period? A) $21,330 B) $34,500 C) $55,200 D) $13,140 ANSWER […]
Date: September 2nd, 2020
Refer to the above table. You have a choice among four alternatives. Choice A lets you invest $250,000 at 4 percent; B lets you invest $125,000 at 6 percent; C lets you invest $62,500 at 8 percent, and D lets you invest $31,250 at 10 percent. Which choice will get you to $1 million faster? […]
Date: September 2nd, 2020
All of the following will cause the reported growth rate in a country to change EXCEPT A) changes in productivity. B) population changes. C) a shift of the production possibilities curve. D) changes in the number of poor people in the country. ANSWER D
Date: September 2nd, 2020
Over time in a growing economy, the long run aggregate supply curve will A) shift inward to the left. B) shift outward to the right. C) become increasingly stee ANSWER B
Date: September 2nd, 2020
Aggregate supply is A) the horizontal summation of all supply curves for services. B) the sum of all planned production in the economy. C) the stock of all goods in the economy. D) the summation of all product supply curves. ANSWER B
Date: September 2nd, 2020
Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth? A) because the slower-growing countries save too much B) because the annual growth rate is compounded over time C) because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for […]
Date: September 2nd, 2020
In the classical model, an increase in aggregate demand will cause A) an increase in actual output, or Gross Domestic Product (GDP). B) a decrease in actual output, or Gross Domestic Product (GDP). C) a decrease in price level. D) an increase in price level. ANSWER D
Date: September 2nd, 2020
Classical economists assumed that A) wages were inflexible. B) individuals suffered from money illusion. C) prices were sticky. D) none of the above. ANSWER D
Date: September 2nd, 2020
An outward shift of the production possibilities curve demonstrates A) economic growth. B) an increased rate of inflation. C) a cyclical shock. D) a recession. ANSWER A
Date: September 2nd, 2020
