A change in the growth rate of a country of one percentage point ...

[big1devin]

A change in the growth rate of a country of one percentage point annually has
 
  A) a large impact on the economy in the current year, but not in the future.
  B) a large impact in the future due to compounding.
  C) a small impact in the current year, and smaller impact in the future because of compounding.
  D) very little impact on the economy of a country.

Question 2

Say's law explains
 
  A) how long-run real Gross Domestic Product (GDP) stability is achieved in the Keynesian model.
  B) why economies experience business cycles.
  C) how the economy can go into recession.
  D) how long-term real Gross Domestic Product (GDP) stability is achieved in the classical model.

[enass]

Answer to Question 1

B

Answer to Question 2

D