Distinguish between low and high incomes and low and high economic growth rates. What key features are present in an economy when incomes are high or fast growing and absent when incomes are low and stagnating or growing slowly? Provide an example of an economy with a low income and slow growth rate, a low income and rapid growth rate, and a high income with sustained growth over many decades.

Use the following information to work Problems 2 and 3.

In South Korea, real GDP per hour of labor is $22, the real wage rate is $15 per hour, and people work an average of 46 hours per week.