Refer to Figure 23-1. If the economy is at point J, what will ...

[Yolanda]

Refer to Figure 23-1. If the economy is at point J, what will happen?
 
  A) Inventories have fallen below their desired level, and firms increase production.
  B) Inventories have risen above their desired level, and firms increase production.
  C) Inventories have risen above their desired level, and firms decrease production.
  D) Inventories have fallen below their desired level, and firms decrease production.

Question 2

Refer to Table 22-5. Consider the statistics in the table above in describing the industrialized countries. Are these consistent with the economic growth model? Briefly explain.
 
  What will be an ideal response?

[lcapri7]

Answer to Question 1

A

Answer to Question 2

These statistics for selected industrial economies are consistent with the economic growth model. The countries with the lowest levels of real GDP per capita in 1960 had the fastest growth rates between 1960 and 2000. The countries with the highest levels of real GDP per capita had the slowest growth rates.

[Yolanda]

Thanks for the timely response, appreciate it

[mcabuhat]

Excellent