Question suppose real gdps in country a and country b are, Ask an Expert

Economics

Question: Suppose real GDPs in country A and country B are identical at $10 trillion dollars in 2005. Suppose country A's economic growth rate is 2% and country B's is 4% and both growth rates remain constant over time.

On a graph, show country A's potential output until 2025.

On the same graph, show country B's potential output.

Calculate the percentage difference in their levels of potential output in 2025.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92582843

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question explain which factors would cause the is curve to

Question: Explain which factors would cause the IS curve to be steeper, and which would cause it to be flatter. When is the IS curve more likely to be steep - during recessions or booms? The response must be typed, singl ...

Question 1 describe the possible barriers to entry and exit

Question: 1. Describe the possible barriers to entry and exit for (a) a group of nurse practitioners who practice in primary care wanting to establish their own independent office to care for patients with primary care m ...

Question consider a consumer whose preferences can be

Question: Consider a consumer whose preferences can be represented by the utility function u(x, y) = x + y (a) Originally, px = 1, py = 2 and m = 1. What bundle does the consumer choose, and what is his utility from this ...

Question consider the following data the money supply is 1

Question: Consider the following data: The money supply is $1 trillion, the price level equals 2, and real GDP is $5 trillion in base-year dollars. What is the income velocity of money? The response must be typed, single ...

Question if the government decides to tax the consumption

Question: If the government decides to tax the consumption of cigarettes, (suppose there was not one on the market before) what will happen in the market for cigarettes? (Notice: This is a tax on CONSUMPTION not producti ...

Question as noted earlier in this chapter ibm fell on hard

Question: As noted earlier in this chapter, IBM fell on hard times during the 1980s and ultimately abandoned its no-layoffs policy in the 1990s, while also taking other cost-cutting initiatives. Its "Hundred Percent Club ...

Question in an effort to stop the migration of many of the

Question: In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit's city council is considering passing a law that would give investment tax credits to auto ma ...

Question the present worth of an amount of money y that

Question: The present worth of an amount of money "Y" that will be received 10 years from now is $10,000. At an interest rate of 8% per year, the value of "Y" 10 years from now is equal to? The response must be typed, si ...

Question in june of 2009 the us house of representatives

Question: In June of 2009 the U.S. House of Representatives passed H.R. 2454, which introduced a "cap-and-trade" system to reduce carbon emissions associated with global warming. The federal government will issue a fixed ...

Question rules restrict how we interact with others and

Question: Rules restrict how we interact with others and, therefore, restrict our ability to engage in exchange. Given these are undesirable (from an economic standpoint), what benefits to rules provide us? What is the d ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert