China's GDP Per Capita Is Currently Lower Than That of Japan.If

question 128

Multiple Choice

China's GDP per capita is currently lower than that of Japan.If Japanese GDP per capita grows at 2 percent per year,how fast must Chinese GDP per capita grow to eventually catch up to Japanese GDP per capita?

• A) At least 5 percent per year
• B) At least 3 percent per year
• C) Any rate above 2 percent per year
• D) Any positive rate

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Definitions:

Real Output

The total value of all goods and services produced by an economy, adjusted for inflation, representing the actual productivity.

Price Levels

A calculated average price for every good and service produced domestically.

Keynesian Range

A segment of the Aggregate Supply curve where output is significantly influenced by demand, based on Keynesian economics.

Aggregate Demand

The collective quest for goods and services within an economic sphere, pegged at a designated price level and spanning a predetermined interval.