Why Do Economic Growth Rates Matter?
1) A Countrys rate of economic growth is important because an economy that grows to slowly fails to raise the living standards of its citizens
2)Related don’t let this happen to you! Use the data for the country of New Finlandia in the following table to calculate the following 2006 4,568. A] the percentage of real gap per capita between 2006 and 2010 is ____3.92_____% The average annual growth rate in real gap per capita between 2006 and 2010 is _________2_____%
3)The following table gives real gap figures for 4 years. fail the growth rate for each year, and then find the average annual growth for the period. % to rounded to 1 decimal place. 1999 140 billion. A} the average annual growth rate for this period is _______10 8_6____2____% …show more content…
4)Why do economic growth rates matter?
A} _D. all of the above______
5)Suppose u r discussing global trade with a friend who insists a country would be better off by restricting trade and investment with other countries? Which of the following economic responses would be most logical? ________
6)The figure to the right illustrates the relationship between weak and strong rule of law. …….. what else explains why more low income countries do not experience rapid growth as the catch up line predicts. A} __All of the above_____ 7)The government policy that does not increase economic growth is ____foreign trade policy that favors imposing a high tariff on imported high-tech goods________________________________
8)Economics arrives at the conclusion that ecomic growth will always improve economic well-being. Do you agree? ________________
9)What can low income countries do in order to increase the amount of loanable funds available to firms for investment projects such as new factories or improves technology? ____. provide savings incentives______
10) What is the key idea in the aggregate expenditure macroeconomic model?______that in any particular year, the level of GDP is determined mainly by the level of aggregate …show more content…
expenditure. 11)What is the effect on inventories, gap, and employment when aggregate expenditure (total spending) exceeds gdp? inventories decrease, gdp increase, employment increase
12) Related to solved problem #2 Fill in the missing blanks in the following table. Assume for simplicity that taxes are 0. National income and real gdp (y) 8000 Consumption (C) 7200 Saving(s) ____________ In the above example, the marginal propensity to consume is __.9_____(round 2 . place) In above ex, the mps is .1
13) complete following table to indicate what effect a decrease in each of the components will have on consumption. A decrease in….. will (increase/ decrease) consumption Price lvl increase hushed wealth decrease expected future income decrease current diposable income decrease interest rate increase
14) If the mpc is .9, a $50 increase in disposable income will lead to a $______ increase in consumption and a $_____ increase in savings (round 2 decimal places)
15) Complete the following table. An increase in will( increase/decrease) net exports an increase will cause a decrease decrease decrease
16) At point a in the graph to the right, planned aggregate expenditure is _____ GDP. AT point B ______. AT point C___________. At point A the unchanged ______the vertical distance between point A and the 45 degree line_____
17) Consider the figure to the right. this economy is in macroenconomic equilibrium at what level of real gdp? __80__ billion What is the level of planned investment? 10 billion
18) Use the following data to answer the question: Y= 8000 C= 6200 I&G= 1500 Nx= -500 The unplanned change is ___-700___ and the real gap will __increase___.
19) The multiplayer effect is the process by which: The process by which an increase in autonomous spending leads to a larger increase in real GDP. Which of the following is not true about the multiplaier effect of such a change in govt purchases? the value of the multiplier is - $5 billion
20) related to love the problem #$ real gap 10,000. the equilibrium level of real gap is $ 13000____billion . Mpc .75 A 300 billion ……… spading of…….. gap will be……..
21) Acording to the pardox of thrift, a simultaneous incurase in saving without any change in income leads to…..A simultaneous increase in saving without any change in income leads to lower real GDP in the short run but higher real GDP in the long run
22) The aggregate demand slopes down ward The Wealth Effect, The Interest-Rate Effect, and The International Trade Effect and the demand curve for and individual product slopes downward Consumers substitute the more expensive product for cheaper goods
23) Consider the following events and then figure out how these events will affect the aggregate demand curve.
An increase in the price level will cause a _Movement up along the aggregate demand curve. An increase in government purchases will cause a _________ the aggregate demand curve. Rightward shift of
An increase in state income taxes will cause a _________ the aggregate demand curve. Leftward shift of
An increase in interest rates will cause aggregate demand curve. Leftward shift of
A faster income growth in other countries will cause a _________ US aggregate demand curve. Rightward
shift
24) explain how each of the following would afeect the lras. A) price level increase price lvl not change B) labor force increase productivity capacity shift right C) increase in quantity of capital goods productivity shift right D) technological change in increase productivity shift right
26) In the short run aggregate demand , an increase in aggregate demand,_increas the price lvl….._, whereas in the long run, an automatic menchanism brings the economy to a point where…higher
27) the graph on the right shows the economy in long run equilibrium at point a as people revise their price level expectations downward, firms and workers strike bargains for lower nominal wages..
28) What is fical policy? The federal government efforts to keep the economy stable by increasing or decreasing taxes or government spending. Who is responsible for fiscal policy? federal gov’t
29) which of the following statements is most accurate regarding fiscal policy and monetary policy? fp govt spending taxes fed govt
28)what is the difference between federal purchases and federal expenditure? Federal purchases require that the government receives a good or service in return, whereas federal expenditures include transfer payments Are federal purchases higher than they were in 1960? as a percentage of GDP, federal purchases have decreased since 1960? Are federal expenditures higher than they were in 1960? as a percentage of GDP, federal purchases have increased since 1960
29)was this legislation a fiscal policy ? yes stimulate economy
30 gov’t spending is total spending including goods and … govt expenditure r spending by govt on goods services and factors of production. Govt expenditures have increased and govt purchases have increased the major cause of these trends is transfer payments
31) corporate tax increase expansionary fiscal policy. defense spending is increased contradictory policy . federal reserve lowers the target for the federal funds target for the federal reserve funds rate not part of fiscal policy. Families r allowed to deduct all their expenses for daycare from their federal income taxes expansionary the individual income tax rate is decreases this is expansionary policy
32) Complete the following table for a static ad- as model: recession ex. in govt spending or de txes rise rising inflation contractionary decrease govt spending fall
33) A) if the govt does not take any policy actions then in 2017….. value of real GDP 17.7 trillion. Value of price level 114. expansionary Increasing govt spending and cutting taxes. 2.7%
34) year 206 17.8 If congress and the president r successful in keeping real gdp at it’s potential level in2017, state whether the following…….. real gdp rise potential real gdp does not change the inflation rate decrease will the unemployment rate will decrease
35) Crowding out refers to the last graph in the crowding out states that, when the government increases the supply in the loanable funds market, interest rates rise (people cannot borrow a lot of money) then investment declines because they have no extra money
2)Related don’t let this happen to you! Use the data for the country of New Finlandia in the following table to calculate the following 2006 4,568. A] the percentage of real gap per capita between 2006 and 2010 is ____3.92_____% The average annual growth rate in real gap per capita between 2006 and 2010 is _________2_____%
3)The following table gives real gap figures for 4 years. fail the growth rate for each year, and then find the average annual growth for the period. % to rounded to 1 decimal place. 1999 140 billion. A} the average annual growth rate for this period is _______10 8_6____2____% …show more content…
4)Why do economic growth rates matter?
A} _D. all of the above______
5)Suppose u r discussing global trade with a friend who insists a country would be better off by restricting trade and investment with other countries? Which of the following economic responses would be most logical? ________
6)The figure to the right illustrates the relationship between weak and strong rule of law. …….. what else explains why more low income countries do not experience rapid growth as the catch up line predicts. A} __All of the above_____ 7)The government policy that does not increase economic growth is ____foreign trade policy that favors imposing a high tariff on imported high-tech goods________________________________
8)Economics arrives at the conclusion that ecomic growth will always improve economic well-being. Do you agree? ________________
9)What can low income countries do in order to increase the amount of loanable funds available to firms for investment projects such as new factories or improves technology? ____. provide savings incentives______
10) What is the key idea in the aggregate expenditure macroeconomic model?______that in any particular year, the level of GDP is determined mainly by the level of aggregate …show more content…
expenditure. 11)What is the effect on inventories, gap, and employment when aggregate expenditure (total spending) exceeds gdp? inventories decrease, gdp increase, employment increase
12) Related to solved problem #2 Fill in the missing blanks in the following table. Assume for simplicity that taxes are 0. National income and real gdp (y) 8000 Consumption (C) 7200 Saving(s) ____________ In the above example, the marginal propensity to consume is __.9_____(round 2 . place) In above ex, the mps is .1
13) complete following table to indicate what effect a decrease in each of the components will have on consumption. A decrease in….. will (increase/ decrease) consumption Price lvl increase hushed wealth decrease expected future income decrease current diposable income decrease interest rate increase
14) If the mpc is .9, a $50 increase in disposable income will lead to a $______ increase in consumption and a $_____ increase in savings (round 2 decimal places)
15) Complete the following table. An increase in will( increase/decrease) net exports an increase will cause a decrease decrease decrease
16) At point a in the graph to the right, planned aggregate expenditure is _____ GDP. AT point B ______. AT point C___________. At point A the unchanged ______the vertical distance between point A and the 45 degree line_____
17) Consider the figure to the right. this economy is in macroenconomic equilibrium at what level of real gdp? __80__ billion What is the level of planned investment? 10 billion
18) Use the following data to answer the question: Y= 8000 C= 6200 I&G= 1500 Nx= -500 The unplanned change is ___-700___ and the real gap will __increase___.
19) The multiplayer effect is the process by which: The process by which an increase in autonomous spending leads to a larger increase in real GDP. Which of the following is not true about the multiplaier effect of such a change in govt purchases? the value of the multiplier is - $5 billion
20) related to love the problem #$ real gap 10,000. the equilibrium level of real gap is $ 13000____billion . Mpc .75 A 300 billion ……… spading of…….. gap will be……..
21) Acording to the pardox of thrift, a simultaneous incurase in saving without any change in income leads to…..A simultaneous increase in saving without any change in income leads to lower real GDP in the short run but higher real GDP in the long run
22) The aggregate demand slopes down ward The Wealth Effect, The Interest-Rate Effect, and The International Trade Effect and the demand curve for and individual product slopes downward Consumers substitute the more expensive product for cheaper goods
23) Consider the following events and then figure out how these events will affect the aggregate demand curve.
An increase in the price level will cause a _Movement up along the aggregate demand curve. An increase in government purchases will cause a _________ the aggregate demand curve. Rightward shift of
An increase in state income taxes will cause a _________ the aggregate demand curve. Leftward shift of
An increase in interest rates will cause aggregate demand curve. Leftward shift of
A faster income growth in other countries will cause a _________ US aggregate demand curve. Rightward
shift
24) explain how each of the following would afeect the lras. A) price level increase price lvl not change B) labor force increase productivity capacity shift right C) increase in quantity of capital goods productivity shift right D) technological change in increase productivity shift right
26) In the short run aggregate demand , an increase in aggregate demand,_increas the price lvl….._, whereas in the long run, an automatic menchanism brings the economy to a point where…higher
27) the graph on the right shows the economy in long run equilibrium at point a as people revise their price level expectations downward, firms and workers strike bargains for lower nominal wages..
28) What is fical policy? The federal government efforts to keep the economy stable by increasing or decreasing taxes or government spending. Who is responsible for fiscal policy? federal gov’t
29) which of the following statements is most accurate regarding fiscal policy and monetary policy? fp govt spending taxes fed govt
28)what is the difference between federal purchases and federal expenditure? Federal purchases require that the government receives a good or service in return, whereas federal expenditures include transfer payments Are federal purchases higher than they were in 1960? as a percentage of GDP, federal purchases have decreased since 1960? Are federal expenditures higher than they were in 1960? as a percentage of GDP, federal purchases have increased since 1960
29)was this legislation a fiscal policy ? yes stimulate economy
30 gov’t spending is total spending including goods and … govt expenditure r spending by govt on goods services and factors of production. Govt expenditures have increased and govt purchases have increased the major cause of these trends is transfer payments
31) corporate tax increase expansionary fiscal policy. defense spending is increased contradictory policy . federal reserve lowers the target for the federal funds target for the federal reserve funds rate not part of fiscal policy. Families r allowed to deduct all their expenses for daycare from their federal income taxes expansionary the individual income tax rate is decreases this is expansionary policy
32) Complete the following table for a static ad- as model: recession ex. in govt spending or de txes rise rising inflation contractionary decrease govt spending fall
33) A) if the govt does not take any policy actions then in 2017….. value of real GDP 17.7 trillion. Value of price level 114. expansionary Increasing govt spending and cutting taxes. 2.7%
34) year 206 17.8 If congress and the president r successful in keeping real gdp at it’s potential level in2017, state whether the following…….. real gdp rise potential real gdp does not change the inflation rate decrease will the unemployment rate will decrease
35) Crowding out refers to the last graph in the crowding out states that, when the government increases the supply in the loanable funds market, interest rates rise (people cannot borrow a lot of money) then investment declines because they have no extra money