Suppose an economy’s real GDP is $100,000 in year 1 and $110,000 in year 2. What is the growth rate of its GDP? Assume that population was 200 in year 1 and 205 in year 2. What is the growth rate in GDP per capital?
What will be an ideal response?
$10,000/$100,000 or 10% from year 1 to year 2. The per capital growth can be calculated as follows: 500 per capital income in year 1 ($100,000/200); $536.59 per capital income in year 2($110,000/205). The change is 36.59 compared to base of $500 or 36.59/500 = 7.32%.
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Which one of the following statements best describes the results of the Clean Air Act in the United States?
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Before summer 2008, if you wanted a cell phone in Bhutan, you only had one choice: B-Mobile, owned and operated by the government. Then, this past spring, a privately owned competitor, Tashi, was let in
What do you predict will happen to equilibrium price and quantity in the cell phone market? A) Price will decrease and quantity will increase. B) Price will increase and quantity will decrease. C) Both price and quantity will increase. D) Both price and quantity will decrease.