If real GDP is 100 in year 1, and grows at a rate of 3 percent per year for 9 years, what will real GDP be in 9 years?
What will be an ideal response?
GDP [9 years later] = (1 + .03)9(100) = 130.48
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Which is of the following statements is correct?
A. If demand decreases, then price will decrease. B. If price decreases, then demand will decrease. C. If demand increases, then price will decrease. D. If price increases, then demand will decrease.
What market structures other than oligopoly have the characteristic of one firm's actions affecting the actions of its competitors? Explain your answer
What will be an ideal response?
Suppose firms in Hong Kong can produce 40,000 plastic dolls or 80,000 squirt guns each week, while firms in Taiwan can produce 40,000 plastic dolls or 40,000 squirt guns each week. Therefore
A) People in Hong Kong sacrifice two dolls for every squirt gun produced. B) People in Taiwan sacrifice two dolls for every squirt gun produced. C) People in Hong Kong sacrifice 2 squirt guns for every doll produced. D) none of the above are true.
In a bilateral monopoly, the wage rate is likely to be ________ than the value of marginal product of labor and ________ than in a pure monopsony
A) lower; lower B) lower; higher C) higher; lower D) higher; higher