Question

The real GDP per capita of country D doubles in 50 years. Annual inflation rate is...

The real GDP per capita of country D doubles in 50 years. Annual inflation rate is 25% and annual population growth rate is 2%.

    1. Calculate the annual economic growth rate.
    2. Calculate the annual nominal GDP growth rate.
    3. Country D tries to expand the economy by cutting taxes and increasing government spending. Explain why these polices are undesirable for country D.
    4. A serious riot occurs in Country D, and the country becomes politically unstable. Many resources are destroyed.
  2. Draw an AD-AS graph to show the effects of the riot.
  3. Explain why political instability reduces economic growth.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
GDP per Capita Growth and Rule of 72 Current Year Previous Year Growth Rate Real GDP...
GDP per Capita Growth and Rule of 72 Current Year Previous Year Growth Rate Real GDP $8.4 trillion $8.0 trillion Population 202 million 200 million GDP per Capita $ $ Formulas you could use: Growth Rate in percentage = (Current year value – previous year value)/ previous year GDP per Capita = Real GDP/population (Ch6 Section 6.4) Future value = Present value x (1 + growth rate)^number of years (Ch7 Section 7.2) Rule of 72: 72/growth rate = number of...
This question is an application of Rule of 72. Consider a country for which GDP per...
This question is an application of Rule of 72. Consider a country for which GDP per capital doubles every 50 years. Calculate the annual growth rate for this country. Consider another country for which GDP per capita doubles every 25 years. Calculate the annual growth rate for the second country. Given everything else constant, calculate in how many years catch up effect will occur between the two countries when initially, the first country’s GDP per capita is 4 times that...
What will happen to the annual rate of growth of per capita real GDP if the...
What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes​ down? A. The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP. B. It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita...
The following questions are about production and growth. Country Current Real GDP per capita Current Growth...
The following questions are about production and growth. Country Current Real GDP per capita Current Growth Rate A $15,468 1.98% B $13,690 2.03% C $6,343 3.12% D $1,098 0.61% Which country is the richest? How do you know? Which country is advancing most quickly? How do you know? If a country increases capital investment, what does it do to their growth rate? Why do we use GDP per capita instead of GDP itself to determine standard of living in a...
1 ) North Dakota's GDP per capita is $65,000, while South Dakota's GDP per capita is...
1 ) North Dakota's GDP per capita is $65,000, while South Dakota's GDP per capita is $48,000. Advances in technology increase North Dakota's GDP per capita over the following decade to $78,000. If South Dakota benefits in the same way from those technologies, what will South Dakota's GDP per capita be after a decade? A) $57,600 B) $61,000 C) $65,000 D) $78,000 2 ) According to Malthus, when the standard of living in any economy is above subsistence, ________. A)...
1.Why is GDP per capita a better measure of well-being in a country than its natural...
1.Why is GDP per capita a better measure of well-being in a country than its natural resources? 2.When would you use the Rule of 72? 3.Say that two countries had GDP per capita of $10,000 50 years ago and today one has GDP per capita of $20,000 and the other of $40,000. Explain why this second country had or did not have twice the annual growth rate of the first country. 4.For this question, first calculate and report the per...
After several years of solid growth in real per capita GDP, economic growth in Brazil slowed...
After several years of solid growth in real per capita GDP, economic growth in Brazil slowed substantially from 2012 to 2016, and then rebounded in 2017. The 2017 Brazilian data below are from the World Bank database called World Development Indicators. Nominal GDP Growth Rate GDP Deflator Growth Rate Population Growth Rate 14.58% 3.79% 0.79% A. What was the rate of economic growth for Brazil in 2017? Give your answer to one decimal if necessary. B. If the price level...
1) Real GDP per capita, growing at a constant rate over a 35-year period, doubles in...
1) Real GDP per capita, growing at a constant rate over a 35-year period, doubles in size at the end of that period. What must the annual growth rate of real GDP per capita be for this economy? a) 2% b) 1% C)4% D) 15% ----- 2) Assume China in 2008 has a per-capita income of$3000 and the U. S. has a per-capita income of $40,000.Between 2008 and 2028 China grows at 9 percent while the U. S. grows at...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT