There is a direct relationship between economic growth rates and ...

[charchew]

There is a direct relationship between economic growth rates and the wealth of a nation. Do you agree or disagree? Why?
 
  What will be an ideal response?

Question 2

What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?
 
  A) It will increase since an increase in population means an increase in labor that translates into an increase in real GDP.
  B) It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita real GDP.
  C) It will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP.
  D) The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP.

[sabina576]

Answer to Question 1

Disagree. Wealthier nations often have smaller growth rates than poorer nations. Part of the reason is that a two percent growth rate for a rich nation means a lot more actual growth of the level of per capita real Gross Domestic Product (GDP) than it does for a poor nation.

Answer to Question 2

C

[charchew]

Gracias!

[ktidd]

Excellent