1 A Country S Per Capita Nominal Gdp Is Growing At 5 Its Price Level Is Growing At 3 And Its Population Is Growing A 1 (47.71 KiB) Viewed 35 times
1 A Country S Per Capita Nominal Gdp Is Growing At 5 Its Price Level Is Growing At 3 And Its Population Is Growing A 2 (18.52 KiB) Viewed 35 times
1 A Country S Per Capita Nominal Gdp Is Growing At 5 Its Price Level Is Growing At 3 And Its Population Is Growing A 3 (15.65 KiB) Viewed 35 times
1. A country's per-capita nominal GDP is growing at 5%, its price level is growing at 3% and its population is growing at 1%. How fast is its aggregate real GDP growing? (a) 2% (b) 3% (c) 4% (d) 5% 2. The expenditure approach of GDP does not include (a) Changes in private inventories. (b) Intermediate investment goods. (c) Residential Investment. (d) Intellectual Property Products. 3. Suppose two countries have the same savings and depreciation rates. The Solow model predicts that (a) these countries will converge regardless of total factor productivity. (b) these countries will converge in capital stock but not in output. (c) these countries will converge in output but not in capital stock. (d) these countries will converge only if total factor productivity is the same.
4. In the Solow model, for a given depreciation rate and a given total factor produc- tivity, a higher savings rate always predicts (a) higher GDP and higher consumption. (b) higher capital stock and higher consumption. (c) higher GDP and lower capital stock. (d) higher capital stock and higher investment.
5. During a recession, if the number of unemployed workers that become "discouraged workers” increases, (a) the employment rate falls. (b) the employment rate remains the same. (c) the participation rate remains the same. (d) the unemployment rate increases.
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