PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Question
Chapter 7, Problem 1RQ
To determine
Determine the change in real GDP per person in the industrialized countries over the past century.
Expert Solution & Answer
Explanation of Solution
The real GDP of a nation is always treated as a basic measure of the level of economic activity. Thus, the real GDP per person indicates a measure of the quantity of goods and services available to the typical resident of a country. Over the past centuries, since 1870, the data show that the value of real GDP per person increases, which is more than 10-fold in Country U’s economy and many other industrial nations and 25-fold in Country J. As a result, the material standard of living of an average person in these industrialized countries increases. However, there is a huge gap between the growth rates of the real GDP in underdeveloped nations and developed nations. In the final result, there is a huge gap in the standard of living of people between the high income nations and the low income nations.
Economics Concept Introduction
Real GDP: Real GDP measures the volume of output. It is adjusted for inflation and measured at constant prices.
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Students have asked these similar questions
The data of for 1960 shows that the real GDP per capita was $6,354 for Japan, $12,282 for Germany, and $13,780 for the United Kingdom. (2011
US$).
Suppose Japan maintained a 3% annual growth rate of real GDP per capita, Germany a 2% annual growth rate and the United Kingdom a 1%
annual growth rate.
Then which of the three countries will have the highest real GDP per capita in 2040? (Click to select)
The real GDP per capita in 2040 for Japan:
The real GDP per capita in 2040 for Germany: [
The real GDP per capita in 2040 for the United Kingdom:
(Give your answer rounded to the nearest whole number)
:
Question 6
The president of the World Bank has asked you to calculate the average per capita GDP growth rate of Rwanda from 1980 to
2010. In 1980, per capita GDP was about $728 and in 2010 it was about $1,025. You tell him the average growth rate of per
capita GDP is about
percent.
223
O1.1
O1
O23
Using the demand and supply of loanable funds, demonstrate the effect of the following on the interest rate. As a result, what would you expect to be the impact of the change on growth? (LO9-3)
a-Government increases spending.
b-Businesses become more productive.
c-The people as a whole save more.
Chapter 7 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
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