Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital goods) are $20 billion, $40 billion, and $36 billon, respectively The Macroeconomy Conmer goods Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point a to point bover a 10-year period, what must have been its annual rate of economic growth? 7 percent b. It, instead, the economy was at point cat the end of the 10-year period, by what percentage did it fall short of its production capacity? percent

Refer to the figure below and assume that the values for points a, b, and c(the combined value of consumer goods and capital goods) are $10 billion, $20 billion, and $14 billion, respectively. The Macroeconomy Capital goods PPF₂ PPP, Consumer goods Instructions: Enter your answers as a whole number. a. If the economy moves from point to point bover a 2-year period, what must have been its annual rate of economic growth? percent b. If, instead, the economy was at point c at the end of the 2-year period, by what percentage did it fall short of its production capacity? 30 percent

Use the Simple Classical Macroeconomic Model to answer this question. Suppose the tax cut has not been enough to stimulate sufficient job growth. The government passes infrastructure improvement legislation to increase government spending from $3,000 to $4,000. What is the affect on GDP from the combined changes (Taxes and Spending) in government policies? a. 53,000 b. 60,000 c. 26,500 d. 33,000

Course: Macroeconomics Find GDP per capita when the population is 1 billion and GDP is $3 trillion.

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12. Suppose an economy represented by the graph below started with K = 25, so it was in a steady state, but then disaster struck and most of the capital was destroyed. (Assume that no people were hurt so the labor force is the same size.) dK 25 K After the disaster would we expect the economy to grow or shrink? a. grow, I> dK b. grow, I dK d. shrink, I< dK

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Consumer goods (per period) 0 Reference: Ref 2-5 X •Z -Curve 2 Curve 1 Capital goods (per period) (Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. Point Z: A will be attained as soon as the economy becomes efficient and moves to curve 2. B. is attainable if the quantity and/or quality of factors decreases. C. is attainable if the economy is able to reach full employment. D. is unattainable, all other things unchanged.

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Suppose that over a 30-year period Buskerville's price level increased from 72 to 142, while its real GDP rose from $1.2 trillion to $2.2 trillion. Instructions: Round your answers to 1 decimal place. Use simple (not compounded) growth calculations for the percentage change. a. Did economic growth occur in Buskerville? (Click to select) V If so, by what average yearly rate in percentage terms? percent b. Did Buskerville experience inflation? (Click to select) V If so, by what average yearly rate in percentage terms? percent c. Which shifted rightward faster in Buskerville: its long-run aggregate supply curve (ASLR) or its aggregate demand curve (AD)? |(Click to select) V