Real GDP per person in the United States was $9864 in 1950. Over the next 48 years, it grew at a compound annual rate of 2.0%. If, however, real GDP per person had grown at an average compound annual rate of 2.5%, then real GDP per capita in the United States in 1998 would have been approximately ______ larger.

A. $3420
B. $6750
C. $9900
D. $25 500


Answer: B. $6750

Economics

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Which of the following is not true of declining industries?

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Potential output depends on all of the following except:

A. the size of the capital stock. B. the number of firms in the economy. C. the number of people who can work. D. technology.

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You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today?

A. $50,000 B. $45,455 C. $10,000 D. indeterminate with the given information

Economics

The Fed can increase the federal funds rate by

A) buying Treasury bills, which increases bank reserves. B) selling Treasury bills, which decreases bank reserves. C) buying Treasury bills, which decreases bank reserves. D) selling Treasury bills, which increases bank reserves.

Economics