How do we calculate growth in a nation's standard of living? ...

[jeatrice]

How do we calculate growth in a nation's standard of living?
 
  What will be an ideal response?

Question 2

The desired reserve ratio is 10 percent. Joe deposits 1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred.
 
  Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B. Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary?
  A) 90 B) 900 C) 810 D) 1,000 E) 100

[adammoses97]

Answer to Question 1

The standard of living is measured by real GDP per person. Thus growth in the standard of living is calculated using the growth rate of real GDP per person.

Answer to Question 2

C

[jeatrice]

Excellent

[laurnthompson]

Thanks for the timely response, appreciate it