Which of the following about economic growth is true?
a. The fastest growing economies in the world are mostly less developed countries.
b. The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more) are mostly high-income industrial countries.
c. The slowest growing countries in the world, many of which are experiencing declines in per capita GDP, are less developed countries.
d. Both a and c are true.
D
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
If black markets help people meet their needs, they will tend to ________ created by the restrictive government policies
A) increase the absolute advantage B) reduce the deadweight losses C) reduce the cooperative surpluses D) increase the tax revenues
In general, autonomous spending increases have a lower multiplier effect on real GDP when the economy is open to international trade
a. True b. False Indicate whether the statement is true or false
According to the negative income tax, the breakeven income level for a program whose tax credit is $3,000 and whose tax rate is 30 percent would be
A. $4,500. B. $9,000. C. $10,000. D. $6,000.