Output Per Person Is 170 in an Economy in Which

question 67

Multiple Choice

Output per person is 170 in an economy in which 15 percent of the population are engaged in research and development,where their productivity is 0.002,and the total population size is 100 million.If this economy is on a balanced growth path,then output per person in the next period will be ________.

• A)175.1
• B)195.5
• C)176.2
• D)177.3

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Definitions:

Four-Year Term

A period often associated with the duration of certain elected offices or specific agreements, notably used to denote the length of a presidential term in many countries.

Federal Reserve Act

The 1913 U.S. legislation that established the Federal Reserve System as the central banking authority, responsible for monetary policy and oversight of banks.

Established

Refers to something that has been in existence for a long time and is accepted by many or most people.

Board of Governors

A governing body at the top of an organization or institution, such as the Federal Reserve, responsible for overseeing its operations and making key decisions.