Why do small differences in the rate of economic growth produce large differences in the size of the economy over time? Illustrate with an example
Please provide the best answer for the statement.
Small changes in the rate of growth can be very important. Over a period of time small changes are cumulative in the same way that compound interest payments are cumulative in a bank account. Using the rule of 70 to estimate the time it takes to double GDP, we can see that Nation A, whose growth rate is 3% takes 23 years to double its GDP, but Nation B whose growth rate is only 2% may take nearly 35 years to double its GDP.
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The Boskin Commission concluded that the CPI overstates increases in the cost of living by ________ percentage point(s) per year
A) Less than 1 B) 1 to 2 C) About 3 D) Over 4
Which of the following is most likely to be an inferior good?
a. airline travel b. restaurant meals c. a subscription to the Wall Street Journal d. soft drinks e. used clothing
When the United States is moving downward along the J-curve, its trade balance is ______________ as an immediate after-effect of a____________________ of the dollar
A) improving; depreciation B) improving; appreciation C) worsening; depreciation D) worsening; appreciation
Suppose a firm can hire 100 workers at $8.00 per hour but must pay $8.05 per hour to hire 101 workers. Marginal factor cost (MFC) for the 101st worker is approximately equal to:
A. $8.00. B. $8.05. C. $13.05. D. $13.00.