Why Do Economic Growth Rates Matter?

1) A Countrys rate of economic growth is important because an economy that grows to slowly fails to raise the living standards of its citizens

2)Related don’t let this happen to you! Use the data for the country of New Finlandia in the following table to calculate the following 2006 4,568. A] the percentage of real gap per capita between 2006 and 2010 is ____3.92_____% The average annual growth rate in real gap per capita between 2006 and 2010 is _________2_____%

3)The following table gives real gap figures for 4 years. fail the growth rate for each year, and then find the average annual growth for the period. % to rounded to 1 decimal place. 1999 140 billion. A} the average annual growth rate for this period is _______10 8_6____2____%
A} _D. all of the above______

5)Suppose u r discussing global trade with a friend who insists a country would be better off by restricting trade and investment with other countries? Which of the following economic responses would be most logical? ________

6)The figure to the right illustrates the relationship between weak and strong rule of law. …….. what else explains why more low income countries do not experience rapid growth as the catch up line predicts. A} __All of the above_____ 7)The government policy that does not increase economic growth is ____foreign trade policy that favors imposing a high tariff on imported high-tech goods________________________________

8)Economics arrives at the conclusion that ecomic growth will always improve economic well-being. Do you agree? ________________

9)What can low income countries do in order to increase the amount of loanable funds available to firms for investment projects such as new factories or improves technology? ____. provide savings incentives______

10) What is the key idea in the aggregate expenditure macroeconomic model?______that in any particular year, the level of GDP is determined mainly by the level of aggregate
An increase in the price level will cause a _Movement up along the aggregate demand curve. An increase in government purchases will cause a _________ the aggregate demand curve. Rightward shift of
An increase in state income taxes will cause a _________ the aggregate demand curve. Leftward shift of
An increase in interest rates will cause aggregate demand curve. Leftward shift of
A faster income growth in other countries will cause a _________ US aggregate demand curve. Rightward