Briefly explain how growth in real GDP differs across economies including the United States, Japan, Africa, Central America, Hong Kong, Korea, and Singapore
What will be an ideal response?
Over the past 100 years, growth in real GDP per person in the United States has averaged 2 percent per year. The growth rate has varied from one period to the next. Some rich nations, such as Japan, are catching up to the U.S. level of real GDP per person. Many poor nations, especially those in Africa and Central America are not catching up. But Hong Kong, Korea, Singapore, and Taiwan are generally growing more rapidly than the United States and so they are catching up.
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In the short-run macroeconomic equilibrium
A) real GDP equals potential GDP and aggregate demand determines the price level. B) the price level is fixed and short-run aggregate supply determines real GDP. C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand. D) real GDP is always less than potential GDP.
A point outside a production possibilities curve reflects
a. efficiency b. specialization c. inefficiency d. unemployment e. an unattainable choice
An example of overt collusion is
a. a cartel. b. price leadership. c. tacit collusion. d. a perfectly contestable market.
Describe three of the ways that the U.S. federal government responded to the financial crisis of 2007-2009 and to the resulting problems in the real sector of the economy. Be sure to include in your answer the government's specific intent in each of these actions