Question

#26.1 When gross investment is positive, net investment must be positive. is always zero may be...

#26.1

When gross investment is positive, net investment

  • must be positive.

  • is always zero

  • may be either positive or negative.

  • must be negative.

#27.1

If the economy's real GDP doubles in 18 years, we can

  • conclude that its average annual rate of growth is about 3.9 percent.

  • not say anything about the average annual rate of growth.

  • conclude that its average annual rate of growth is about 5.5 percent.

  • conclude that its average annual rate of growth is about 2.4 percent.

#1

Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about _______ percent.

  • 20

  • 58

  • 34

  • 51

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Homework Answers

Answer #1

26.1. Maybe either positive or negative.

Explanation: Net investment = Gross investment - depriciation. So, when the gross investment is positive, the net investment can be negative or positive depending on the value of depreciation.

27.1 conclude that its average annual rate of growth is about 3.9 percent.

Explanation: We can use the rule of 70 here to find out the number of years in which a certain amount will be doubled at a certain compounding rate. The number of years = 70/rate of growth = 70/18 = 3.9 years.

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