If the real GDP in Haiti grew at an annual rate of 2 percent and the country's population grew at an annual rate of 4 percent, how long will it take for GDP per capita to double?
A. Approximately 18 years.
B. Approximately 36 years.
C. It will never double because population is increasing more rapidly than real GDP.
D. Approximately 72 years.
Answer: C
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When considering changes in tax policy, economists usually focus on
A) people's ability to pay taxes. B) the marginal tax rate. C) the average tax rate. D) people's willingness to pay taxes.
The GDP deflator:
A) measures the price changes of a fixed basket of goods and services. B) measures the price changes of all final goods and services produced. C) measures the price changes of just goods consumed by the household sector. D) none of the above.
If households increase their saving at the same time that the government increases its deficit,
A) the demand and supply curves for bonds will be unaffected. B) the demand curve for bonds will shift to the left. C) the supply curve for bonds will shift to the right. D) the equilibrium interest rate will definitely rise.
The incentive to lend increases as the real rate of interest decreases.
Answer the following statement true (T) or false (F)