1) Economic growth is measured by A) changes in real GDP B) changes in nominal G
ID: 1106506 • Letter: 1
Question
1) Economic growth is measured by A) changes in real GDP B) changes in nominal GDP C) changes in the employment rate. D) All of the above are used to measure economic growth. 2) In 2014, Armenia had a real GDP of $5.21 billion and a population of 1.98 million. In 2015, real GDP was $5.59 billion and population was 1.97 million. What was Armenia's economic growth rate from 2014 to 2015? A) 0.38 percent B) 9.0 percent C) 3.8 percent D) 7.3 percent 3) Which of the following is used to calculate the standard of living? A) real GDP/population B) (real GDP in the current year-real GDP in previous year)real GDP in previous year) x 100 C) the one-third rule D) real GDP/aggregate hours 4) The Rule of 70 is used to A) estimate how much of an economy's growth rate is due to increases in capital per hour of labor. B) estimate how long it will take the level of any variable to double. C) calculate the economy's growth rate D) calculate the standard of living. 5) Using the Rule of 70, if the country of Huttodom's current growth rate of real GDP per persorn was 7 percent a year, how long would it take the country's real GDP per person to double? A) 0.7 years B) 20 years C) 7 years D) 10 years 6) Which of the following predicts that there can be no sustained rise in real GDP per person above the subsistence level? A) classical growth theory B) neoclassical growth theory C) the new growth theory D) None of the above because all predict that there will be a sustained rise above the subsistence level.Explanation / Answer
1)
changes in real GDP
the above is the answer as it captures the true changes in the output levels.
2)
economic growth=(5.59/5.21)-1=7.3%
the above is the answer
3)
real GDP/population
the above is the answer as it will tell the per capita income which means higher the income levels indicating better life.
4)
estimate how long it will take the level of any variable to double
the above is the answer as general formula =70/interest rate
5)
how long for double=70/7=10 years
the above is the answer
6)
classical growth theory
the above is the answer
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