Real GDP can grow/increase for two reasons, but which one represents economic growth? ○ The economy might be returning to full employment in an expansion phase of the business cycle. O Potential GDP might be increasing. ○ The return to full employment in an expansion phase of the business cycle. O Noen of the above are correct.

Over the past 100 years, in the United States the average growth rate cof grew at a faster rate than Select one: a. real GDP; the population O b. inflation; real GDP O c the population: real GDP C. O d. real GDP; nominal GDP

When economists speak of "long-run economic growth, they mean increasing the Select one: O a. real GDP of a country. O O O b. geographic size of a country. c. per capita real GDP of a country. d. population of a country. According to the instructors calculations, the average person in the United States spends Select one: O O O O a. approximately 5 and ½ hours b. about 3 and ½ hours c about 8 hours d. 45 minutes On a graph with savings on the x-axis and real interest rates on the y-axis, the supply of savings curve following the law of supply would: Select one: O O O O a. be horizontal a day in activities needed to continue living (what he described as not dying b. have a negative slope c. be vertical d. have a positive slope

. Suppose that society decided to reduce consumptionand increase investment.a. How would this change affect economic growth?b. What groups in society would benefit from thischange? What groups might be hurt?

Suppose that work hours in New Zombie are 300 in year 1 and productivity is $12 per hour worked Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places. a. What is New Zombie's real GDP? b. If work hours increase to 320 in year 2 and productivity rises to $14 per hour, what is New Zomble's rate of economic growth? percent Check my work

Which of the following is likely to increase long-run economic growth? O A. Inflation. O B. An increase in savings. OC. An increase in consumption spending. D. Many banks go bankrupt.

Between 1916 and 2016, the average growth rate of real GDP per person in the United States was 2 percent a year. What information does this fact give us about the growth rates of other variables? During this period, grew at a faster rate than O A. GDP; the population O B. the population; real GDP O C. real GDP; the population O D. inflation; real GDP Click to select your answer.

Assume that an economy currently has a nominal GDP of $500 billion. If the economy were to grow at 3%, calculate what nominal GDP will be in five years, ten years, twenty years, and forty years if it is able to sustainthat same growth rate each year.

Which of the following is a benefit of long-run economic growth? O A. increased future interest rates B. a greater ability to reduce inequality C. growth in nominal GDP greater than real GDP D. decreased productive capacity O E. decreased current saving and increased current consumption

If the GDP per capita grows by 5%, it means that O a. The rich people's incomes increased by 5% © b. On the average, the people's income grew by 5% © c Everyone's income grew by 5% d. Employment rates increased by 5%