If real GDP per capita grows at a rate of 5% per year consistently over time, how many years would it take for it to double in size?
5
10 My answer
14
70
The purpose of indexing Social Security payments to the CPI is to ______.
increase corporate profits
justify continued government funding of the Bureau of Labor Statistics
avoid the privatization of Social Security (my answer)
maintain the purchasing power of retirees
37. Economists frequently use GDP per capita to better reflect ______.
the impact of prices on GDP
differences in living standards across countries
people who are employed
people who are both employed and unemployed (my answer)
38. During a recession ______.
unemployment and the growth rate of real GDP both decrease
unemployment decreases and the growth rate of real GDP increases
unemployment increases and the growth rate of real GDP decreases
there is no relationship between unemployment and the growth rate of real GDP
Not sure about this one
1. Let' see if your answer works for a country with an initial GDP of $50,000
50,000 * 1.05 = 52,500
52,500 * 1.05 = 55,125
55,125 * 1.05 = 57,881.25
Year 4: 60,775.31
Year 5: 63814,08
Will it reach 100,000 in ten years?
The next two are wrong.
38. Go back and check your book and then post your answer.
To determine how many years it would take for real GDP per capita to double in size with a consistent growth rate of 5% per year, we can use the Rule of 70. The Rule of 70 states that the number of years it takes for a variable to double is approximately equal to 70 divided by the growth rate.
In this case, the growth rate is 5%. So, to find the number of years it would take for real GDP per capita to double, divide 70 by 5.
Answer: It would take approximately 14 years for real GDP per capita to double in size.
Now, let's move on to the other questions:
The purpose of indexing Social Security payments to the CPI is to maintain the purchasing power of retirees. This ensures that the value of Social Security benefits keeps pace with inflation and allows retirees to maintain their standard of living.
Economists frequently use GDP per capita to better reflect differences in living standards across countries. GDP per capita takes into account the total output of a country's economy divided by its population, providing a measure of average income and living standards.
During a recession, unemployment increases and the growth rate of real GDP decreases. A recession is generally characterized by a decline in economic activity, resulting in fewer job opportunities and lower GDP growth.
Hope this helps!