Macroeconomics Quiz 7 Economic growth, financial system, business cycles

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28 Οκτ 2013 (πριν από 3 χρόνια και 9 μήνες)

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Macroeconomics


Quiz 7



Economic growth, financial system, business cycles



1
.
Use

www.cia.gov

World Factbook

(go to Guide to country comparisons, follow to Economy)

to find the following
information

a.

list 3 largest ec
onomies in the world (in terms of GDP)
, include your numbers








b.

list 3 richest
and 3 poorest
economies in the world (per capita GDP)
, include numbers











c.

list 3 fastest
and 3 slowest
growing economies in the world
, include numbers











d.

fi
nd the
growth rate

of US GDP.



e.

select any
country and
use the rule of 70 to
calculate how many years it will take to double its GDP assuming
growth rate will remain at its current level






f.

what other indicators of well
-
being can one use to compare stand
ards of living across countries? Compare
any two countries using data from the Factbook.















2.
In 2000
, the rate of growth of Real Gross Do
mestic Product was 3.5%. In 2001
, it was 2.0%. That means

a) T
otal production was less in 2001 than in 2
000
.

b) Production was growing at an increasing rate

c) Production was growing at a decreasing rate

d) Production was decreasing at an increasing rate


3
.


Why are some countries rich and other countries are poor
?


















4. Give your advice:

What

should the
government

of a small African country do to improve economic growth, eventually
eliminate poverty, and become a rich country?




















5
.

(bonus)

Consider the following data for a closed economy

(closed economy means Net Export
s = 0)
:



Y = $12 trillion


C = $8 trillion


G = $2 trillion


T = $1.5 trillion

Government
Borrowing =

$1

trillion

(= budget deficit
)



a.
Write down aggregate expenditure, aggregate income and

government budget identities.


b.
Use identities to c
alculat
e
,
show

work:



Private savings


Business i
nvestment spending


Transfer payments


Government budget deficit or surplus