ECN 204 Chapter 8: Economic Growth

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azurelouse708

4 Apr 2016

School

Ryerson University

Department

Economics

Course

ECN 204

Professor

Constantine Angyridis

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Document Summary

Economists define and measure economic growth as either: an increase in real gdp occurring over some time period, an increase in real gdp per capita occurring over some time period. It is calculated as a percentage rate of growth per quarter or per year. Real gdp per capita is the amount of real output per person in a country. Real gdp growth is a good measure of aggregate economic activity. Growth in real gdp per capita is a good measure of comparing living standards. Real gdp in canada was . 6 billion in 2013 and . 2 billion in 2014. Percent change in growth =[(2014 real gdp -2013 real gdp)/2013 gdp] . 100 = [(. 2 billion - . 6 billion)/. 6 billion] 100= 2. 4 % This was the rate of economic growth in canada in 2014. Real gdp in canada was . 6 billion in 2013 and population was 35. 3 million so real gdp per capita was (,705,600 million/35. 3 million) =

Related Questions

Which of the following are used by economists to define and measure economic growth?

a) An increase in real GDP occurring over some time period.
b) An increase in real GDP per capita occurring over some time period.

c) All of the above

lilacbadger994

The town of York produces three goods, Good A, Good B, and Good C. The following is information regarding York's production of these three goods and their prices over 3 years. Use 2015 as a base year (i.e., 2015 = 100).

Year 2014 Year 2015 Year 2016

Quantity of Good A: 3 4 5

Price of Good A: $10 $10 $11

Quantity of Good B: 10 10 10

Price of Good B: $2 $4 $6

Quantity of Good C: 2 4 6

Price of Good C: $5 $6 $7

GDP questions:

1) What is the total money value of Good A that's produced in 2015?

2) Calculate the nominal (or current dollar) GDP for 2014.

3) Calculate the real (or constant dollar) GDP for 2014.

4) Calculate the real (or constant dollar) GDP for 2015.

5) What is the real economic growth rate from 2014 to 2015?

6) What is the real GDP per capita for 2014, assuming the population equals 10 individuals?

7) Calculate the GDP deflator for 2014, 2015, and 2016.

coralhippopotamus395

1. Economic growth is measured as an increase in real GDP.

True/False

2. Per capita real GDP

a) is equivalent to the real GDP level.
b) is a measure of the value of output produced and available to an average person.
c) is higher in developing countries.
d) is a measure of an economy's income distribution.
e) is a measure of the GDP per country.

3. Suppose Congress enacts a 5 percent decrease in annual military expenditures. Other things equal, this will be associated with a movement down along the aggregate demand curve.

True/False

4. In relative terms, globalization has affected all countries equally.

True/False

5. There was more immigration in the nineteenth and early twentieth centuries than there is in the present day.

True/False

6. Suppose that Italy's average annual growth rate is 6 percent and Canada's average annual growth rate is 4 percent. Then the time required for Canada's growth rate to double will be 12 years more than the time required for Italy's growth rate to double.

True/False

7. Assume that annual real GDP increases by 4.5 percent and the population size grow by 2.7 percent in a year. The annual percapita real growth rate will be 2.8 percent

True/False

8. Most developing countries

a) have no natural resources.
b) experience slow growth in their labor force.
c) allocate their resources to the production of capital goods.
d) are unable to convert their natural resources into productive inputs.
e) make inefficient use of their technological advancement.

9. Economic statistics show that in compared to First World countries, developing countries have

a) a higher life expectancy.
b) higher productivity rates.
c) lower education levels.
d) lower birthrates.
e) a higher rate of private investment.

silverotter427

ECN 204 Chapter 8: Economic Growth

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