In the situation described in Problem , suppose that vocational training during the past year enables the people of this nation to repair all capital goods so that they continue to function as well as new. All other factors are unchanged, however. In light of this single change to the conditions faced in this nation, will the nation's economic growth rate for the current year be negative, zero, or positive?
The rate of economic growth is zero.
The market value of an economy's goods or services increases or decreases when asset values rise or fall. To measure such growth, statisticians often use the percent rate of increase in real gross domestic product, or real GDP.
If educational advancements during the last year enable the inhabitants of this country to mend all capital goods while keeping all other parameters constant, the country will maintain its current level of capital goods.
As a result, its rate of economic growth will be zero.
Consider Figure 9-7, and suppose that we round the rate of growth of per capita real GDP experienced in the European Union between 1981 and 1990 to the nearest full percentage point. Based on the information in Table 9-3, by what percentage would per capita real GDP has increased between 1990 and 2020 if the economic growth rate will have remained at this rounded level?
The graph to the right shows a production possibilities curve for 2020 and two potential production possibilities curves for 2021, denoted and
a. Which of the labelled points corresponds to the maximum feasible 2020 production that is more likely to be associated with the curve denoted ?
b. Which of the labelled points corresponds to the maximum feasible 2020 production that is more likely to be associated with the curve denoted ?
Per capita real GDP grows at a rate of percent in country and at a rate of percent in country . Both begin with equal levels of per capita real GDP. Use Tablerole="math" localid="1651526847805" to determine how much higher per capita real GDP will be in country after years. How much higher will real GDP be in country after years?
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