If one is interested in comparing the economic well-being of citizens across countries which of the following measures would be the most useful: nominal GDP, real GDP, or real GDP per capita? Explain
What will be an ideal response?
Real GDP is preferred over nominal GDP since price changes have been omitted. However, real GDP per capita takes into account the variation in populations across countries. Thus, real GDP per capita would be the most useful measure of economic well-being.
Economics
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If velocity and output are fixed at 5 and 400, respectively, and the price level is 2, then the money supply is
A) 4,000. B) 200. C) 160. D) 40.
Economics
Graphically illustrate and explain the effects of an increase in the saving rate on the Solow growth model. In your graph, clearly label all curves and equilibria
What will be an ideal response?
Economics