Even Though Economists Find Different Conclusions, Depending on the Models

question 9

Multiple Choice

Even though economists find different conclusions, depending on the models they use, for the explanation of cross-country growth since 1960, several variable consistently help explain differences in per-capita GDP growth. Which of the following is not one of them?

• A) Absolute latitude
• B) Measures of human capital
• C) Openness to trade
• D) Population growth
• E) None of the above

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Definitions:

U.S. Residents

Individuals who live in the United States, including citizens, permanent residents, and long-term visitors.

Aggregate Demand

The amassed demand for all types of goods and services in an economic domain, set at a uniform price level across a certain time range.

Inventories

The goods and materials that a business holds with the purpose of resale or production in the future.

Wealth Effect

A behavioral economic theory suggesting that consumers spend more as the value of their assets rises, particularly visible in the increase in spending following a rise in home values or stock market portfolios.