Suppose real GDPs in Hauck and Meran are identical at $10 trillion in 2000. Suppose Hauck's economic growth rate is 2% and Meran's is 4% and the rates remain constant over time. Calculate the percentage difference in their levels of potential output in 2036.
A. There will be no difference in their levels of potential output.
B. Meran's potential output will be 50% higher than that of Hauck's.
C. Hauck's potential output will be 100% higher than that of Meran's.
D. Meran's potential output will be 100% higher than that of Hauck's.
Ans: D. Meran's potential output will be 100% higher than that of Hauck's.
You might also like to view...
Capital is the
A. flow of new equipment that a firm acquires over the course of a year. B. amount of increase in a firm’s equipment over a year. C. amount of money that a firm has on hand at a given time. D. stock of plant, equipment, and other productive resources held by a firm.
Under ________ there are many firms selling identical products
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly
If cyclical unemployment is negative, then
A) the actual unemployment rate is below the natural rate of unemployment. B) the natural rate of unemployment is getting smaller. C) there have been some errors in classifying the type of unemployment experienced by some people. D) structural unemployment must be increasing.
Which of the following is not an example of an open access resource?
a. deer in the forest b. fish in the ocean c. oil deposits d. wild flowers e. King crabs in the Bering Sea