Author Question: When considering the aggregate demand curve, the wealth effect, interest rate effect and effects ... (Read 100 times)

neverstopbelieb

  • Hero Member
  • *****
  • Posts: 534
When considering the aggregate demand curve, the wealth effect, interest rate effect and effects from international trade reinforce each other.
 
  Indicate whether the statement is true or false

Question 2

Suppose that one country has a GDP that is ten percent of its richer neighbor, but the poorer country is growing at a rate of eight percent per year while the richer country is growing at a rate of two percent per year.
 
  Which country will be richer in 60 years?


yeungji

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

TRUE

Answer to Question 2

Using the rule of 70, it can be shown that the poor country will be richer in 60 years. The poor country's GDP will have doubled more than six times over this period, while the rich country's GDP will not have even doubled twice. So while the poor country might have started slowly, it is much richer than the rich country by 60 years later



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

For a complete list of videos, visit our video library