Chat with AIExam 8: A: Economic Growth
Identify the two major ways economic growth is measured.
(78) 
VerifiedEconomic growth can first be defined and measured as an increase in real GDP occurring over a period of time.Economic growth can also be defined and measured as an increase in real GDP per capita occurring over a period of time.Economic growth is usually calculated as an annual percentage rate of growth.
How much faster will a nation's Real GDP double if its annual rate of growth is 3 percent rather than 1.5 percent per year?
(80) VerifiedThe answer is based on the rule of 70.A 3 percent increase in the annual rate of growth means that the Real GDP in an economy will double in about 23 years (70/3).If the annual rate of growth is 1.5%, it will take 47 years (70/1.5) for the Real GDP to double.Therefore, at 3% productivity growth, the nation's Real GDP will double 24 years earlier than at 1.5% productivity growth.
Offer a defense of economic growth.
(72) VerifiedThe case for economic growth is compelling, especially for those countries who have a relatively low standard of living.Growth makes the scarcity problem less acute.Related to this issue, growth also makes it possible for nations to alleviate poverty.There are also nonmaterial considerations that result from economic growth such as the ability to increase one's leisure time.Proponents of growth argue that growth and environmental protection can occur simultaneously and that the case for limiting growth in order to preserve the environment is a false issue.Growth is sustainable because the market system conserves scarce resources through higher prices.
What are the economic implications from the current rise in the Average Rate of Productivity Growth?
(84) Suppose an economy's real GDP is $50,000 in year 1 and $55,000 in year 2.What is the growth rate of its GDP? Assume that population was 100 in year 1 and 105 in year 2.What is the growth rate in real GDP per capita?
(69) Suppose an economy's real GDP is $125 billion in year 1 and $130 billion in year 2.What is the growth rate of its GDP?
(83) Explain why even small changes in the rate of economic growth are significant.Use the "rule of 70" to demonstrate the point.
(79) If an economy has 9,000 workers with each working 2,000 hours per year and the average real output per worker-hour is $20, what is real GDP?
(74) Economy growth matters? Either support or critic the statement and support your answer.Use a numeric example as part of your support or critic.
(75) Summarize the historical growth record of Canada between 1961 and 2011 in terms of real GDP growth and in terms of real GDP per capita growth.
(85) What are the characteristics of current rise in the Average Rate of Productivity Growth that distinguishes it from the economy of previous periods?
(85) Canada's economy has realized significant economic growth in the last 50 or so years.Still, there are some items missing in our growth calculations that might impact our standard of living.List three of them and describe how their inclusion might modify our interpretation of economic growth statistics.
(78) Suppose an economy's real GDP is $100,000 in year 1 and $110,000 in year 2.What is the growth rate of its GDP? Assume that population was 200 in year 1 and 205 in year 2.What is the growth rate in GDP per capita?
(68) What are some of the positive changes associated with modern economic growth?
(73) What is the relevance of productive and allocative efficiency to the growth process?
(88) 
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