Refer to Table 25-1

question 81

Multiple Choice

Refer to Table 25-1.What is real GDP in this economy in Year 20 if the annual growth rate is 4%?
A) 2191
B) 8000
C) 20 800
D) 80 000
E) 836 683
Answer: A
Diff: 3
Topic: 25.1a.the nature of economic growth
Skill: Applied
Learning Obj.: 26-3 Explain how commercial banks create money through the process of taking deposits and making loans.
User1: Table
The diagram below shows alternate paths for two hypothetical economies,each starting with GDP of $1 billion.Assume that Area 1 is equal to Area 2. FIGURE 25-1
-Refer to Figure 25-1.Suppose Economy A jumps to the path of Economy B at Year 0 by increasing the share of GDP that is saved.In that case,which of the following statements about Economy A is true?

• A)2191
• B)8000
• C)20 800
• D)80 000
• E)836 683
• Answer: A
• Diff: 3
• Topic: 25.1a.the nature of economic growth
• Skill: Applied
• Learning Obj.: 26-3 Explain how commercial banks create money through the process of taking deposits and making loans.
• User1: Table
• The diagram below shows alternate paths for two hypothetical economies,each starting with GDP of $1 billion.Assume that Area 1 is equal to Area 2. FIGURE 25-1
• -Refer to Figure 25-1.Suppose Economy A jumps to the path of Economy B at Year 0 by increasing the share of GDP that is saved.In that case,which of the following statements about Economy A is true?
• A)Economy A will not be able to regain the losses in consumption it incurs by jumping to the path of Economy B.
• B)By Year Y,the increase in consumption made possible by the economy's higher growth rate equals the consumption sacrificed in earlier years.
• C)By Year X,Economy A is better off in terms of material living standards for having jumped to the path of Economy B.
• D)By jumping to a new growth path at Year 0,Economy A has increased the share of national income that is consumed.
• E)By Year X,Economy A is saving and investing the same share of its national income as it would have been had it stayed on its original path.

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Definitions:

Sociological Construct

A concept or perception of an idea or object that is created through societal or cultural practices.

Variable

An attribute or characteristic that can assume different values or vary among individuals, entities, or across situations.

Grounded Theory

A research methodology used in social sciences to construct theories based on data systematically gathered and analyzed through a process of comparative analysis.

Alienation

A state within social interactions characterized by minimal integration or shared beliefs, alongside significant separation or detachment between people, or between a person and a collective.