« previous next »

Author Question: If a nation's population grows at 2 percent and its real GDP grows at 4 percent, what is the growth ... (Read 170 times)

leilurhhh

  • Hero Member
  • *****
  • Posts: 560
on: Jun 29, 2018
If a nation's population grows at 2 percent and its real GDP grows at 4 percent, what is the growth rate of real GDP per person?
 
  What will be an ideal response?

Question 2

What is the effect on aggregate supply and potential GDP of an increase in the money wage rate?
 
  What will be an ideal response?


potomatos

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 29, 2018
Answer to Question 1

The growth rate of real GDP per person equals the growth rate of real GDP minus the population growth rate. Hence, in the question at hand, the real GDP per person growth rate equals 4 percent minus 2 percent, or 2 percent.

Answer to Question 2

An increase in the money wage rate decreases aggregate supply and shifts the aggregate supply curve leftward. It has no effect on potential GDP.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Three ways that factors affect mortality in response to changes in population density. Three ways that factors affect mortality in response to changes in population density.
Independent assortment produces 50 percent recombinants Independent assortment produces 50 percent recombinants
Are reality shows “real”? Does the media tell the “truth”? Are reality shows “real”? Does the media tell the “truth”?
The level of future emissions is closely linked to the rate of population growth The level of future emissions is closely linked to the rate of population growth
Growth in Open Economies Growth in Open Economies
Determine the mass percent of Fe3+ in a 0.546g sample of iron ore, if 22.40 mL of a 0.1000 M ... Determine the mass percent of Fe3+ in a 0.546g sample of iron ore, if 22.40 mL of a 0.1000 M ...
Video: Febrile Seizure

For a complete list of videos, visit our video library