Consider the following information about Country A. Per Capita Income = USD 1000 Consumption = USD 800 Capital Stock = USD 5000 Estimate the following. 1.Amount of Savings 2.Savings Rate 3.Incremental Capital Output Ratio

One of the biggest challenges for stimulating economic growth in high-income countries is Group of answer choices Meeting basic human needs like food, water, and shelter Limited investment opportunities Increasing education, innovation, and technology Determining how to wisely spend large reserves of savings to promote growth

Suppose some of the country's capital is suddenly destroyed. If the depreciation rate, savings rate, and production function remain unchanged, then the real growth rate will _____ in the short run and the steady-state level of capital will _____ A.increase, decrease B.decrease, decrease C.increase, stay the same D. decrease, stay the same

Our simple growth model implies that Select one: a.countries with higher K/L ratios will have higher economic growth. b.increases in K/L increase Y/L but at a diminishing rate. c.capital has no impact on Y/L. d.there is little prospect of poor countries catching up with rich countries.   In the past few years, several high profile celebrities have campaigned for debt relief for HIPC's (Highly Indebted Poor Countries). While debt relief can potentially play a useful role in poverty reduction there are also some possible downsides such as Select one: a.reducing a poor nations exports. b.increasing government deficits. c.encouraging further debt by setting up an expectation that future debts will also be forgiven. d.under cutting local markets for food and other commodities given as aid.