Refer to Table 25-1

question 36

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.Which of the following costs of economic growth are reflected in this diagram?

• 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.Which of the following costs of economic growth are reflected in this diagram?
• A)the sacrifice of current consumption
• B)lower real interest rate
• C)environmental degradation
• D)resource exhaustion
• E)national saving

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Definitions:

Grain

A small, hard, dry seed used as food, harvested from cereals or legumes.

Rats

While often considered in scientific and medical research contexts, in economics, could metaphorically reference unanticipated variables or detrimental elements affecting market dynamics.

Consume

The process of consuming a product or service to fulfill needs or desires.

Utility Function

A utility function is a representation of preferences over a set of goods and services, showing the level of satisfaction or utility that different bundles of goods provide to a consumer.