Summarize the historical growth record of the United States over the past 50 years in terms of real GDP growth and in terms of real GDP per capital growth. What three qualifications should be made about these growth rates?
What will be an ideal response?
The real GDP has increased about 3.1% per year between 1950 and 2012. Real GDP per capital rose more slowly because population has grown along with GDP. Still the GDP per capital growth has increased at roughly 2% per year between 1950 and 2012. Economic growth in the United States has provided for improved products and services, added leisure and other environmental and quality of life effects such as stronger environmental protection.
You might also like to view...
If people have a sudden increase in confidence in the open economy of the U.S. and want to invest there, the:
A. demand for loanable funds curve would shift left. B. demand for loanable funds curve would shift right. C. supply of loanable funds curve would shift left. D. supply of loanable funds curve would shift right.
M2 includes:
a. Currency in circulation + Checking Accounts b. Checking accounts plus Deposits at the central bank. c. Currency in circulation + Reserves of financial intermediaries (e.g., banks) + Checking Accounts + Near Money. d. Currency in circulation + Checking Accounts + Near Money. e. Currency in circulation + Cash inside financial intermediaries + Deposits at the central bank + Checking Accounts + Near Money.
Which of the following is a potential source of increased productivity?
A. Growth as envisioned by Malthus. B. Crowding out. C. Improved management. D. Environmental changes as described by doomsday forecasters.
Internal shocks to an economy with a fixed exchange rate will
A. have no impact on the domestic economy but will lead to external imbalances. B. have the same types of impacts as monetary and fiscal policy changes. C. have no impact on the country's internal balance but will change the country's balance of payments. D. have no impact on both the country's internal balance and the country's balance of payments.