Suppose the real GDP in an economy in the year 1999 was $2,000 and the total population was 500 . The economy experienced a 5% growth in real GDP and a 2% growth in its population in 2000 . Calculate the change in per capita income of the economy during this period
a. +1%
b. +2.5%
c. -3%
d. +3%
e. -4%
d
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The demand for labor curve is
A) upward sloping at potential GDP and downward sloping elsewhere. B) vertical at potential GDP. C) downward sloping. D) upward sloping because firms demand labor.
In the above figure, at what minimum wage is the unemployment level equal to 200 million hours?
A) $2 per hour B) $4 per hour C) $6 per hour D) $8 per hour
Suppose Brazil has an absolute advantage over other countries in producing almonds, but other countries have a comparative advantage over Brazil in producing almonds. If trade in almonds is allowed, Brazil
a. will import almonds. b. will export almonds. c. will either import almonds or export almonds, but it is not clear from the given information. d. would have nothing to gain either from exporting or importing almonds.
Productivity growth is usually an indicator of
A. future increases in the unemployment rate. B. the increase in the health and prosperity of the economy. C. the possibility of inflation. D. the decline in the health and prosperity of the economy.