Question

A. If long range growth rates increase from 1 % to 2 %, how is our...

A. If long range growth rates increase from 1 % to 2 %, how is our standard of living affected:

The the 1% is nominal, there would be no effect at all.

A 1 % increase will have a negligible effect on long range growth.

No answers are correct

We can double our standard of living every 35-40 years instead of 70-80 years.

B. The most basic reason the United States is wealthy today is:

Spillovers from more advanced countries.

Population increases have led to greater wealth

Price increases have led to economic wealth.

It has grown consistently about 2 % per year the last 200 years.
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Answer #1

Answer (A) - Correct Option is D

Reason - if long run growth rate increases from 1% to 2% then we can double our standard of living every 35-40 years instead of 70-80 years since growth rate is being doubled thats why time be half to double our standard of living

Answer (B) - correct option is D

Reason - US is wealthy today because of its ecnomic growth which us around 2 % since last 200 years. The consistent growth of United states since longer period of time Has lead to increase in real GDP per capita in comparison to other countries

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