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This 31 page Study Guide was uploaded by Sean Quinn on Sunday February 22, 2015. The Study Guide belongs to ECO212 at University of Miami taught by Jerome Krief in Spring2015. Since its upload, it has received 332 views. For similar materials see Economic Principles and Problems in Economcs at University of Miami.
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Date Created: 02/22/15
EC0212 Midterm 1 Study Guide Chapter 10 0 Microeconomics Study of how households and firms 0 Make decisions 0 Interact in markets 0 Macroeconomics Study of economywide phenomena 0 Including in ation unemployment and economic growth 0 Gross Domestic Product GDP Measures the total income of everyone in the economy Measures the total expenditure on the economy s output of goods and services 0 For an economy as a whole Income must equal expenditure 0 Circular ow diagram assumptions Markets 0 Goods and services 0 Factors of production Households 0 Spend all of their income 0 Buy all goods and services Firms 0 Pay wages rent profit to resource owners 0 Gross domestic product GDP Market value of all final goods and services Produced within a country In a given period of time 0 GDP is the market valuequot Market prices re ect the value of the goods ll of allquot All items produced in the economy 0 And sold legally in markets Excludes most items 0 Produced and sold illicitly Produced and consumed at home final Value of intermediate goods is already included in the prices of the final goods goods and services Tangible goods amp intangible services produced Goods and services currently produced within a country Goods and services produced domestically Regardless of the nationality of the producer in a given period of time A year or a quarter 0 YCIGNX Identity Y GDP C consumption I investment G government purchases NX net exports 0 Consumption C Spending by households on goods and services Exception purchases of new housing 0 Investment I Spending on capital equipment inventories and structures Household purchases of new housing Inventory accumulation Government purchases G Government consumption expenditure and gross investment Spending on goods and services By local state and federal governments Does not include transfer payments Net exports NX Exports Imports Exports 0 Spending on domestically produced goods by foreigners Imports 0 Spending on foreign goods by domestic residents Total spending rises from one year to the next Economy producing a larger output of goods and services And or goods and services are being sold at higher prices Nominal GDP Production of goods and services Valued at current prices Real GDP Production of goods and services Valued at constant prices Designate one year as base year Not affected by changes in prices For the base year Nominal GDP Real GDP The GDP de ator Ratio of nominal GDP to real GDP times 100 Is 100 for the base year Measures the current level of prices relative to the level of prices in the base year Can be used to take in ation out of nominal GDP de atequot nominal GDP In ation Economy s overall price level is rising In ation rate Percentage change in some measure of the price level from one period to the next Inflation in year 2 GDP deflator in year ZGDP deflator in year 1 x100 GDP deflator in year 1 The GDP data Real GDP grows over time Growth average 3 per year since 1965 Growth is not steady 0 GDP growth interrupted by recessions Recession GDP GDP Two consecutive quarters of falling GDP Real GDP declines Lower income Rising unemployment Falling profits Increased bankruptcies the best single measure of the economic wellbeing of a society Economy s total income Economy s total expenditure Larger GDP 0 Good life better healthcare 0 Better educational systems Measure our ability to obtain many of the inputs into a worthwhile life not a perfect measure of wellbeing Doesn t include 0 Leisure 0 Value of almost all activity that takes place outside markets 0 Quality of the environment Nothing about distribution of income 0 Rich countries higher GDP per person Better 0 Life expectancy 0 Literacy 0 Internet usage 0 Poor countries lower GDP per person Worse 0 Life expectancy 0 Literacy 0 Internet usage 0 Low GDP per person More infants with low birth weight Higher rates of infant mortality Higher rates of maternal mortality Higher rates of child malnutrition Less common access to safe drinking water Fewer schoolage children are actually in school 0 Low GDP per person Fewer teachers per student Fewer televisions Fewer telephones Fewer paved roads Fewer households with electricity Chapter 10 Study Questions l 1 Because every transaction has a buyer and a seller a GDP is more closely associated with an economy s income than it is with an economy s expenditure b every transaction contributes equally to an economy s income and to its expenditure c the number of firms must be equal to the number of households in a simple circular ow diagram d firms profits are necessarily zero in a simple circular ow diagram ANSWER b Over the last few decades Americans have chosen to cook less at home and eat more at restaurants This change in behavior by itself has a reduced measured GDP b not affected measured GDP c increased measured GDP by the value of the restaurant meals d increased measured GDP by the value added by the restaurant s preparation and serving of the meals ANSWER d Iennifer lives in a home that was newly constructed in 2011 for which she paid 240000 In 2014 she sold the house for 260000 Which of the following statements is correct regarding the sale of the house a The 2014 sale increased 2014 GDP by 260000 and had no effect on 2011 GDP b The 2014 sale increased 2014 GDP by 20000 and had no effect on 2011 GDP c The 2014 sale increased 2014 GDP by 260000 furthermore the 2014 sale caused 2011 GDP to be revised upward by 20000 d The 2014 sale affected neither 2014 GDP nor 2011 GDP ANSWER d Thomas a US citizen works only in Canada The value of the output he produces is a included in both US GDP and US GNP b included in US GDP but it is not included in US GNP c included in US GNP but it is not included in US GDP d included in neither US GDP nor US GNP ANSWER C In the economy of Talikastan in 2015 exports were 200 GDP was 2000 government purchases were 200 imports were 270 and investment was 500 What was Talikastan s consumption in 2015 a830 b1230 c1370 d1770 ANSWER c Which of the following statements about nominal GDP and real GDP is correct a Nominal GDP is a better gauge of economic wellbeing than real GDP b Real GDP is a better gauge of economic wellbeing than nominal GDP c Real GDP and nominal GDP are equally good measures of economic wellbeing d Neither nominal nor real GDP provide a measure of economic wellbeing ANSWER b When an American household purchases a bottle of Italian wine for 100 a US consumption does not change US net exports decrease by 100 and US GDP decreases by 100 b US consumption does not change US net exports increase by 100 and US GDP increases by 100 c US consumption increases by 100 US net exports decrease by 100 and US GDP does not change d US consumption increases by 100 US net exports do not change and US GDP increases by 100 ANSWER c Table 2311 The country of Batavia produces only chocolates and watches Below is a table with recent information on Batavia production and prices The base year is 2009 Prices and Quantities Price of A Box Boxes of Quantity Price of Watches Year of Chocolates Chocolates f 2008 4 100 50 10 2009 5 90 50 15 2010 5 100 60 15 2011 6 80 65 12 1 Refer to Table 2311 What was nominal GDP real GDP and the GDP de ator for 2008 ANSWER Nominal GDP was 4x100 50X10 900 Real GDP was 5x100 50x10 1000 The GDP de ator Nominal GDPReal GDP 9001000 90 Refer to Table 2311 What was nominal GDP real GDP and the GDP de ator for 2009 Show your work ANSWER Nominal GDP was 5x90 50x15 1200 Real GDP was 5x90 50x15 1200 The GDP De ator 100 x Nominal GDPReal GDP 100 Refer to Table 2311 What was nominal GDP real GDP and the GDP de ator for 2010 Show your work ANSWER Nominal GDP was 5x100 60x15 1400 Real GDP was 5x100 50x15 1250 The GDP de ator 100 x nominal GDPreal GDP 100 X 14001250 112 4 Refer to Table 2311 What was nominal GDP real GDP and the GDP de ator for 2011 Show your work ANSWER Nominal GDP was 6x80 65x12 1260 Real GDP was 5x80 50x12 1000 The GDP de ator 100 x 12601000 126 4 Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself Which of the following is correct The value of changing the oil is a included in GDP whether Susan pays Speedy Lube to change it or changes it herself b included in GDP if Susan pays Speedy Lube to change it but not if she changes it herself c included in GDP if Susan changes it herself but not if she pays Speedy Lube to change it d not included in GDP whether Susan pays Speedy lube to change it or she changes it herself ANSWER b 5 A tire manufacturer produces 400 tires valued at 20 each Three hundred tires are sold to a tire shop which then sells them to households for 50 each The remaining tires are unsold and are added to the tire manufacturer s inventory How much is added to GDP a 8000 b 15000 C 17000 1 13000 ANSWER c 6 An American company operates a fast food restaurant in Paris France Which of the following statements is accurate a The value of the goods and services produced by the restaurant is included in both French GDP and US GDP b The value added by American workers and equipment in France is included in US GDP and the value added by French workers and equipment is added to French GDP c The value of the goods and services produced by the restaurant is included in French GDP but not in US GDP d The value of the goods and services produced by the restaurant is included in US GDP but not in French GDP ANSWER C 3 Consumption consists of spending by households on goods and services with the exception of a purchases of intangible services b purchases of durable goods c purchases of new houses d spending on education ANSWER c 4 Which of the following is included in the investment component of GDP a households purchases of newly constructed homes b net additions to firms inventories c firms purchases of capital equipment d All of the above are correct ANSWER d 2 Real GDP will increase a only when prices increase b only when output increases c when prices increase or output increases d All of the above are correct ANSWER b 1 GDP is not a perfect measure of wellbeing for example a GDP excludes the value of volunteer work b GDP does not address the distribution of income c GDP does not address environmental quality d All of the above are correct ANSWER d Chapter 11 0 Consumer price index CPI Measure of the overall level of prices Measure of the overall cost of goods and services Bought by a typical consumer Bureau of Labor Statistics 0 Fix the basket Which prices are most important to the typical consumer Different weight 0 Find the prices At each point in time 0 Compute the basket s cost Same basket of goods Isolate the effects of price changes 0 Chose a base year and compute the CPI Base year benchmark Price of basket of goods and services in current year Divided by price of basket in base year Times 100 Compute the in ation rate CPI in year 2 CPI in year 1 CPI in year 1 Inflation rate in year 2 x 100 0 In ation rate Percentage change in the price index 0 From the preceding period 0 Producer price index PPI Measure of the cost of a basket of goods and services bought by firms Changes in PPI are often thought to be useful in predicting changes in CPI 0 Problems in measuring the cost of living Substitution bias 0 Prices do not change proportionately 0 Consumers substitute toward goods that have become relatively less expensive Introduction of new goods 0 More variety of goods Unmeasured quality change 0 Changes in quality 0 GDP de ator Ratio of nominal GDP to real GDP Re ects prices of all goods amp services produced domestically CPI Re ects prices of goods amp services bought by consumers 0 GDP de ator Compares the price of currently produced goods and services 0 To the price of the same goods and services in the base year 0 CPI Compares price of a fixed basket of goods and services 0 To the price of the basket in the base year 0 Dollar figures from different times Amount in today39s dollars Price level today Amountin yeaerolIarsx Prlce level In yearT 0 Indexation Automatic correction by law or contract Of a dollar amount For the effects of in ation COLA Cost of living allowance 0 Nominal interest rate Interest rate as usually reported Without a correction for the effects of in ation 0 Real interest rate Interest rate corrected for the effects of in ation Nominal interest rate In ation rate 0 Nominal interest rate Always exceeds the real interest rate US economy has experienced rising consumer prices in every year 0 In ation is variable Real and nominal interest rates do not always move together 0 Periods of de ation Real interest rate exceeds the nominal interest rate Chapter 11 Study Questions 1 When the consumer price index falls the typical family 1 a has to spend more dollars to maintain the same standard of living b can spend fewer dollars to maintain the same standard of living c finds that its standard of living is not affected d can save less because they do not need to offset the effects of rising prices ANSWER b The in ation rate is calculated a by determining the change in the price index from the preceding period b by adding up the price increases of all goods and services c by computing a simple average of the price increases for all goods and services d by determining the percentage increase in the price index from the preceding period ANSWER d Suppose a basket of goods and services has been selected to calculate the CPI and 2009 has been selected as the base year In 2007 the basket s cost was 64 in 2009 the basket s cost was 68 and in 2011 the basket s cost was 70 The value of the CPI in 2011 was a 9714 b 10010 c 10294 1 10938 ANSWER c By not taking into account the possibility of consumer substitution the CPI a understates the cost of living b overstates the cost of living c may overstate or understate the cost of living depending on how quickly prices rise d may overstate or understate the cost of living regardless of how quickly prices rise ANSWER b 4 An important difference between the GDP de ator and the consumer price index is that a the GDP de ator re ects the prices of goods and services bought by producers whereas the consumer price index re ects the prices of goods and services bought by consumers b the GDP de ator re ects the prices of all final goods and services produced domestically whereas the consumer price index re ects the prices of goods and services bought by consumers c the GDP de ator re ects the prices of all final goods and services produced by a nation39s citizens whereas the consumer price index re ects the prices of all final goods and services bought by consumers d the GDP de ator re ects the prices of all final goods and services bought by producers and consumers whereas the consumer price index re ects the prices of all final goods and services bought by consumers ANSWER b 5 A decrease in the price of large tractors imported into the United States from Russia a leaves the GDP de ator unchanged but decreases the consumer price index b decreases the GDP de ator but leaves the consumer price index unchanged c decreases both the GDP de ator and the consumer price index d leaves both the GDP de ator and the consumer price index unchanged ANSWER d 1 In 1931 President Herbert Hoover was paid a salary of 75000 Government statistics show a consumer price index of 152 for 1931 and 2296 for 2012 President Hoover s 1931 salary was equivalent to a 2012 salary of about a 4965 b 1132895 c 1057894 d 16080001 ANSWER b If the nominal interest rate is 8 percent and the real interest rate is 55 percent then the in ation rate is a 25 percent b 045 percent c 25 percent d 135 percent ANSWER c A worker received 5 for a daily wage in 1930 What is the value of that wage today if the CPI was 17 in 1930 and is 230 today a 37 cents b b 463 c 6765 d 3786 ANSWER c The consumer price index was 200 in 2008 and 190 in 2009 The nominal interest rate during this period was 45 percent What was the real interest rate during this period a 075 percent b 05 percent c 95 percent d 975 percent ANSWER c Table 2410 The table below shows the prices of baseballs and baseball bats for three years Assume the typical consumer s basket consists of 6 baseballs and 2 baseball bats Price of a Price of a Year Baseball Baseball Bat 2008 325 75 2009 375 82 2010 450 96 Refer to Table 2410 How much was the cost of the basket in 2008 a 7825 b 8475 c 16950 d 45650 ANSWER c Refer to Table 2410 If 2008 is the base year then the consumer price index was a 10000 in 2008 11003 in 2009 and 11743 in 2010 b 10000 in 2008 11003 in 2009 and 12920 in 2010 c 10000 in 2008 11700 in 2009 and 13250 in 2010 d 16950 in 2008 18650 in 2009 and 21900 in 2010 ANSWER b Refer to Table 2410 If 2009 is the base year then the consumer price index was a 8300 in 2008 10000 in 2009 and 13250 in 2010 b 8997 in 2008 10000 in 2009 and 11743 in 2010 c 9088 in 2008 10000 in 2009 and 11743 in 2010 d 16950 in 2008 18650 in 2009 and 21900 in 2010 ANSWER c Refer to Table 2410 If 2010 is the base year then the consumer price index was a 7740 in 2008 8516 in 2009 and 10000 in 2010 b 5050 in 2008 6750 in 2009 and 10000 in 2010 C 9088 in 2008 8516 in 2009 and 10000 in 2010 d 16950 in 2008 18650 in 2009 and 21900 in 2010 ANSWER a Refer to Table 2410 The in ation rate was a 1003 percent in 2009 and 1743 percent in 2010 b 1700 percent in 2009 and 3250 percent in 2010 c 1003 percent in 2009 and 2920 percent in 2010 d 1700 percent in 2009 and 2920 percent in 2010 ANSWER a When we are calculating the consumer price index and the in ation rate for a certain year a the value of the consumer price index may depend on the choice of a base year but the in ation rate does not depend on the choice of a base year b the in ation rate may depend on the choice of a base year but the value of the consumer price index does not depend on the choice of a base year c both the value of the consumer price index and the in ation rate may depend on the choice of a base year d neither the value of the consumer price index nor the in ation rate depends on the choice of a base year ANSWER a Chapter 12 0 Real GDP per person Living standard Vary widely from country to country 0 Growth rate How rapidly real GDP per person grew in the typical year 0 Because of differences in growth rates Ranking of countries by income changes substantially over time 0 Productivity Quantity of goods and services Produced from each unit of labor input 0 Why productivity is so important Key determinant of living standards Growth in productivity is the key determinant of growth in living standards An economy s income is the economy s output 0 Determinants of productivity Physical capital per worker Human capital per worker Natural resources per worker Technological knowledge 0 Physical capital Stock of equipment and structures Used to produce goods and services 0 Human capital Knowledge and skills that workers acquire through education training and experience 0 Natural resources Inputs into the production of goods and services Provided by nature such as land rivers and mineral deposits 0 Technological knowledge Society s understanding of the best ways to produce goods and services Are natural resources a limit to growth 0 Argument Natural resources will eventually limit how much the world s economies can grow 0 Fixed supply of nonrenewable natural resources will run out 0 Stop economic growth 0 Force living standards to fall 0 Technological progress Often yields ways to avoid these limits 0 Improved use of natural resources over time 0 Recycling 0 New materials 0 Are these efforts enough to permit continued economic growth 0 Prices of natural resources Scarcity re ected in market prices Natural resource prices 0 Substantial shortrun uctuations 0 Stable or falling over long spans of time Our ability to conserve these resources 0 Growing more rapidly than their supplies are dwindling Raise future productivity Invest more current resources in the production of capital Tradeoff Devote fewer resources to produce goods and services for current consumption Promote saving increase nation s stock Coincidentally involves tradeoff saving 9 less consumption 0 Higher savings rate Fewer resources used to make consumption goods More resources to make capital goods Capital stock increases Rising productivity More rapid growth in GDP Diminishing returns Benefit from an extra unit of an input Declines as the quantity of the input increases In the long run higher savings rate Higher level of productivity Higher level of income Not higher growth in productivity or income Catchup effect Countries that start off poor Tend to grow more rapidly than countries that start off rich Poor countries Low productivity Even small amounts of capital investment 0 Increase workers productivity substantially Rich countries High productivity Additional capital investment 0 Small effect on productivity Poor countries Tend to grow faster than rich countries Investment from abroad Another way for a country to invest in new capital Foreign direct investment 0 Capital investment that is owned and operated by a foreign entity 0 when a foreign company starts a business in another country ex Ford sells their car in Mexico Mexico receives direct investment Foreign portfolio investment Investment financed with foreign money but operated by domestic residents Positive Externalities Human capital stock Increases human capital train workers abroad Imports and expand technology foreign country brings their own technology Bene ts from investment Some ow back to the foreign capital owners Increase the economy s stock of capital Higher productivity Higher wages Stateoftheart technologies World Bank Encourages ow of capital to poor countries Funds from world s advanced countries Makes loans to less developed countries 0 Roads sewer systems schools other types of capital Advice about how the funds might best be used World Bank and the International Monetary Fund Set up after World War 11 Economic distress leads to 0 Political turmoil international tensions and military con ict Every country has an interest in promoting economic prosperity around the world Education Investment in human capital Gap between wages of educated and uneducated workers Opportunity cost wages forgone Conveys positive externalities Public education large subsidies to humancapital investment 0 Problem for poor countries Brain drain 0 Human capital Education Expenditures that lead to a healthier population 0 Healthier workers More productive 0 Wages Re ect a worker s productivity 0 Right investments in the health of the population Increase productivity Raise living standards 0 Historical trends longrun economic growth Improved health from better nutrition Taller workers higher wages better productivity 0 Vicious circle in poor countries Poor countries are poor 0 Because their populations are not healthy Populations are not healthy 0 Because they are poor and cannot afford better healthcare and nutrition 0 Virtuous circle Policies that lead to more rapid economic growth Would naturally improve health outcomes Which in turn would further promote economic growth 0 To foster economic growth Protect property rights 0 Ability of people to exercise authority over the resources they own 0 Courts enforce property rights Promote political stability Create laws and policies Enforce laws and set boundaries Property rights Prerequisite for the price system to work Lack of property rights Major problem Contracts are hard to enforce Fraud goes unpunished Corruption 0 Impedes the coordinating power of markets 0 Discourages domestic saving Discourages investment from abroad Political instability A threat to property rights Revolutions and coups Revolutionary government might confiscate the capital of some businesses Domestic residents less incentive to save invest and start new businesses Foreigners less incentive to invest Inwardoriented policies Avoid interaction with the rest of the world Infantindustry argument 0 Tariffs 0 Other trade restrictions Adverse effect on economic growth Outwardoriented policies Integrate into the world economy International trade in goods and services Economic growth 0 Amount of trade determined by Government policy Geography 0 Easier to trade for countries with natural seaports 0 Knowledge public good Government encourages research and development 0 Farming methods 0 Aerospace research Air Force NASA 0 Research grants 0 National Science Foundation 0 National Institutes of Health 0 Tax breaks 0 Patent system 0 Large population More workers to produce goods and services 0 Larger total output of goods and services More consumers 0 Stretching natural resources Malthus an everincreasing population 0 Strain society s ability to provide for itself 0 Mankind doomed to forever live in poverty 0 Diluting the capital stock High population growth 0 Spread the capital stock more thinly 0 Lower productivity per worker 0 Lower GDP per worker 0 Reducing the rate of population growth Government regulation Increased awareness of birth control Equal opportunities for women Direct ex One Child Policies Indirect promote birth control techniques Most effective Create incentives for women to conceive less 0 Promoting technological progress World population growth 0 Engine for technological progress and economic prosperity 0 More people More scientists more inventors more engineers Chapter 12 Study Questions 1 Which of the following can be measured by the level of real GDP per person a productivity and the standard of living b productivity but not the standard of living c the standard of living but not productivity d neither the standard of living nor productivity ANSWER C 2 Last year real GDP in the imaginary nation of Populia was 9075 billion and the population was 33 million The year before real GDP was 750 billion and the population was 3 million What was the growth rate of real GDP per person during the year a 10 percent b 14 percent c 17 percent d 21 percent ANSWER a 1 In one day Madison Laundry washed 4000 pounds of laundry with 5 workers who each worked 8 hours What was its productivity a 4000 pounds of laundry b 500 pounds of laundry per hour c 100 pounds of laundry per hour d None of the above is correct ANSWER C 2 Which of the following is an example of human capital a a student loan b knowledge learned from reading books c training videos for new corporate employees d All of the above are correct ANSWER b 1 One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs The growth that arises from capital accumulation is not a free lunch It requires that society a COHSGI VE I ESOUI CES for future generations b sacrifice consumption goods and services now in order to enjoy more consumption in the future c recycle resources so that future generations can produce goods and services with the accumulated capital d None of the above is correct ANSWER b 2 All else equal if there are diminishing returns then if a country raised its capital by 100 units last year and by 100 units this year a the increase in output was greater for this year than last year b the increase in output was greater last year than this year c the increase in output is the same in both years d None of the above is necessarily correct ANSWER b 3 Other things the same if a country raises its saving rate then in the long run a both the level and growth rate of real GDP are unchanged b the level of real GDP is higher but the growth rate of real GDP is unchanged c both the level and growth rate of real GDP are higher d None of the above are correct ANSWER b 1 The catchup effect refers to the idea that poor countries despite their best efforts are not likely ever to experience the economic growth rates of wealthier countries a True b False ANSWER False 2 Two countries with the same saving rates must have the same growth rate of real GDP per person a True b False ANSWER False 4 When Chile experiences investment from abroad it experiences as a result a an increase in productivity b a decrease in Gross National Product GNP c lower wages for Chilean workers d None of the above is correct ANSWER a 5 Investment from abroad a is a way for poor countries to learn the stateoftheart technologies developed and used in richer countries b is viewed by economists as a way to increase growth c often requires removing restrictions that governments have imposed on foreign ownership of domestic capital d All of the above are correct ANSWER d 6 If an Americanbased firm opens and operates a new clothing factory in Honduras then it is engaging in a foreign portfolio investment b foreign financial investment c foreign direct investment d indirect foreign investment ANSWER c 7 10 Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own a natural rights b property rights c input control d collective control ANSWER Which of the following statements is correct a In an economywide sense property rights are an important prerequisite for the price system to work b Property rights give people the ability to exercise authority over the resources they own c Based on the available evidence the existence of wellestablished and well enforced property rights appears to be associated with an enhanced standard of living d All of the above are correct ANSWER d Other things the same higher population growth a raises the amount of physical capital per worker and there is some evidence that it raises the pace of technological progress b raises the amount of physical capital per worker but there is some evidence that it reduces the pace of technological progress c reduces the amount of physical capital per worker but there is some evidence that it raises the pace of technological progress d reduces the amount of physical capital per worker and there is some evidence that it reduces the pace of technological progress ANSWER C Country A has real GDP per person of 100000 while country B has real GDP per person of 200000 All else constant country A will eventually have a higher standard of living than country B if a the level of saving per person is 10000 in country A and 10000 in country B b the level of saving per person is 12000 in country A and 15000 in country B c Both of the above are correct d None of the above are correct ANSWER
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