Real GDP per person in both Alpha and Omega is equal to $2,000. Over the next 100 years, real GDP per person grows at a 1 percent annual rate in Alpha and at a 2 percent annual rate in Omega. After 100 years, real GDP per person in Alpha is ________ smaller than real GDP per person in Omega.
A. $11,080
B. $2,000
C. $5,410
D. $9,080
Answer: D
You might also like to view...
Refer to Figure 24-2. Ceteris paribus, a decrease in the expected future price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Structural budget deficit is the hypothetical deficit we would have under current fiscal policies if the economy were operating near full employment.
Answer the following statement true (T) or false (F)
In a fixed exchange rate system
A) market forces and the country's stock of gold determine its exchange rate. B) a central bank affects the value of a currency by changing its foreign exchange reserves. C) market forces play a role in determining the fixed value of a currency. D) the International Monetary Fund determines exchange rates.
Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs:
a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) b.. How much profit does the firm earn at that rate of output? c. If the price of ties falls to $7, how many ties should the firm produce? d. At what price should the firm shut down?