Use the Table Below to Answer This Question If the Data Support the Neoclassical Growth Theory, We Would

question 36

Multiple Choice

Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006.
$$\begin{array} { | l | c | l | l | } \hline \text { Country } & \begin{array} { c } \text { National Saving } \\\text { (\% of GDP) }\end{array} & \begin{array} { l } \text { Growth rate of } \\\text { real GDP per } \\\text { person }\end{array} & \text { Birth Rate } \\\hline \text { Japan } & 28 & 1.6 & 9.96 \\\hline \text { Canada } & 24 & 2.6 & 11.4 \\\hline \text { Germany } & 23 & 1.9 & 9.35 \\\hline \text { U.S. } & 14 & 1.9 & 14.2 \\\hline\end{array}$$
If the data support the neoclassical growth theory, we would expect to see

• A) the United States with the highest economic growth rate because it has the highest birth rate.
• B) the United States with the highest economic growth rate because a lower savings rate means more income is spent on consumption.
• C) Canada with the highest economic growth rate because it has the highest real GDP per person.
• D) Japan with the highest economic growth rate because the high saving means that more capital is accumulated.

Understand how stress influences the development and progression of specific diseases, like coronary heart disease and HIV/AIDS.

Describe the effects of stress on healing and infection rates.

Understand the psychological factors that contribute to heart disease.

Recognize the role of emotional expression and suppression in health outcomes.

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Definitions:

Classical Self-Correction Mechanism

A theory suggesting that free markets are capable of automatically adjusting to and correcting economic imbalances.

Recessions

A temporary downturn in the economy marked by decreased trade and industrial activities, typically recognized by a decline in Gross Domestic Product (GDP) for two consecutive quarters.

Keynesian Analysis

An economic approach that emphasizes the role government can play in smoothing out the fluctuations in the economy through fiscal and monetary policy.

Macroeconomic Equilibrium

A state in which aggregate supply equals aggregate demand, meaning all goods and services produced are purchased, without any involuntary inventory buildup.