1. For each of the following separate policies, determine the associated factor of economic growth.

Group of answer choices

A. Firms receive tax credit for developing new methods of production.

[ Choose ] Physical capital Human capital Institutions Technology Natural resources

B. The government increases funding for public libraries to acquire more books.

[ Choose ] Physical capital Human capital Institutions Technology Natural resources

C. The government lowers tariff to promote international trade.

[ Choose ] Physical capital Human capital Institutions Technology Natural resources

D. The government provides free community college education

[ Choose ] Physical capital Human capital Institutions Technology Natural resources

E. Firms receive subsidies for providing on-the-job training to employees.

[ Choose ] Physical capital Human capital Institutions Technology Natural resources

F. Firms are penalized for polluting the environment

[ Choose ] Physical capital Human capital Institutions Technology Natural resources

G. The country plans to expand the railway system.

[ Choose ] Physical capital Human capital Institutions Technology Natural resources

H. The government makes its policies transparent to the public.

[ Choose ] Physical capital Human capital Institutions Technology Natural resources

2. From 2009 to 2010, nominal gross domestic product (GDP) in country E grew by 5 percent. Given that price level increased by 2 percent and real GDP per capita grew by 2 percent between 2009 and 2010, find the population growth rate between 2009 and 2010.

Answer: The population growth rate between 2009 and 2010 = _______%

3. For the loanable funds market,

(a) why the curve for the supply of loans is upward sloping?

A. When price level rises, households consume more.",

B. "When interest rate rises, households save more money.",

C. "When household income rises, households consume more.",

D. "When price level rises, AD decreases because of wealth effects."

(b) why the curve for the demand for loans is downward sloping?

A. "When interest rate rises, households consume less.",

B."When price level rises, firms borrow more because of wealth effects.",

C."When interest rate rises, firms borrow less.",

D. "When household income rises, firms borrow less."

4. An event happens, and LRAS shifts to the left.

(a) what happens to full-employment output?

A. "full-employment output rises.",

B. "full-employment output falls.",

C. "full-employment output remains unchanged."

(b) what happens to the price level?

A. "Price level rises.",

B. "Price level falls.",

C. "Price level remains unchanged."

5. Nominal gross domestic product (GDP) in country H grows by 6% annually. The price level increases by 1% and real GDP per capita grows by 3% annually.

Find the annual economic growth rate.

Answer: The annual economic growth rate = __________%

6. Price level rises, (a) Which direction does the SRAS shift to after the increase in price level?

A. "SRAS shifts to the right.",

B. "SRAS shifts to the left.",

C."SRAS does not shift."

(b)?Will quantity of short run aggregate supply increase or decrease?

A. "increase",

B. "decrease",

C."remain unchanged"

(c)?Will quantity of long run aggregate supply increase or decrease?

A. "increase",

B. "decrease",

C. "remain unchanged"

7. Explain why protecting private property rights can promote economic growth.

(This is a bonus question. This question is worth 3 points.)

Suppose that nominal GDP is $400 billion in 2005 in country A. In 2006, nominal GDP is $420 billion in country A. Between 2005 and 2006, the price level rose 1%, and population growth rate was 2%.

Use the given information to answer questions 8 - 10.

8. Calculate the growth rate of nominal GDP of country A between 2005 and 2006. Answer: The growth rate of nominal GDP = ______%

9. Calculate the economic growth rate of country A between 2005 and 2006. Answer: The annual economic growth rate = ______%

10. Using the rule of 70, how long does it take for real GDP per capita to double assuming that country A maintains the same economic growth rate? (Round your answer to the nearest whole integer.)

Answer: The real GDP per capita will double in __________ years

Consider the following table which presents the data of country B. Suppose an event happens. The event is that prices of raw materials for production increase. The effect of the event is only temporary.

Use the given information to answer questions 11- 13.

	Before the event	Short run after the event	Long run after the event
Real GDP (USD)	3.0 trillion	??	??
Price level	100	??	??
Unemployment rate	4.5%	5%	??

11. How much is the natural rate of unemployment? Answer: The natural rate of unemployment = ________%

12. (a) In an AD-AS graph, which curve(s) shift(s) to which direction in short run after the increase in prices of raw materials?

A. "AD shifts to the right.",

B. "SRAS shifts to the right.",

C. "SRAS shifts to the left.",

D. "Both LRAS and SARS shift to the right."

(b) In short run after the event, is the price level above or below 100?

A. "above 100",

B."below 100",

C. "equal to 100"

13. (a) In long run after the event, which curve(s) in an AD-AS graph shift(s) to which direction?

A. "LRAS shifts to the right",

B. "SRAS shifts to the left",

C. "SRAS shifts to the right",

D. "AD shifts to the left"

(b) Is the real GDP above, below or equal to $3.0 trillion in long run after the event?

A. "above $3.0 trillion",

B. "below $3.0 trillion",

C. "equal to $3.0 trillion"

Foreign economies are growing. Use the given information to answer questions 14 - 15.

14. When foreign economies are growing,

(a) which component of AD (C, I, G, or NX) of the domestic economy increases in short run?

A. "C",

B. "I",

C. "G",

D. "NX"

(b) which curve(s) in an AD-AS graph for the domestic economy will shift to which direction in short run?

A. "AD shifts to the right.",

B. "AD shifts to the left.",

C. "SRAS shifts to the left.",

D. "Both LRAS and SRAS shift to the left."

15. Consider the domestic economy. We look at the short-run effects of the event. (a) Does the unemployment rate increase or decrease in short run? [ Select ] ["increases", "decreases"] (b) Does price level rise or fall in short run? [ Select ] ["rises", "falls"] (c) Does real GDP increase or decrease in short run? [ Select ] ["increases", "decreases"]

16.

a/ Log in to Canvas x a/ Quiz: ECON202 Mid X '- Homework Help - 0' X C Chegg Search X Nominal gross dome X From 2009 to 2010, X C lChegg.com X + C A canvastseattlecolleges'eduLu7 , , , i ,l i m , , , , i , , m {tr I] 3'3 (Update ::\\ (X Fall2022 . ' h . / Home (This IS a le upload question. You can draw your graphs With a computer or hand draw them on a piece of paper. If you draw them with a computer, you simply upload the @ Announcements electronic le here. If you hand draw your work, you can scan it with a scanner or Account Assignments cellphone to upload the le here. The le uploaded must be in the format of doc, docx, pdf, jpg or png. Don't submit HEIC le.) Grades Pages peop|e For each of the following separate scenarios, draw an AD/AS graph to show what F'I happens to price level and real GDP of the economy in short run and then long run. | 65 (You should draw three separate graphs.) Syllabus Quizzes Modules The followmg example IS given for your reference. . Student Learning Example: There is a severe drought reducing the farm yield History Center Tutoring P . nce Discussions level Help Panopto Video Badgr a/ Log in to Canvas x a/ Quiz: ECON202 Mid X '- Homework Help - 0' X C Chegg Search X Nominal gross dome X From 2009 to 2010, X C lChegg.com C Ii canvascseattlecollegesceduLu7 7 r ' F \"2022 Example: There is a severe drought reducing the farm yield 7% a Price Home level @ Announcements Account Assignments Grades Pages People Files Syllabus Quizzes Modules Real GDP (V) Student Learning Center Tutoring Discussions History Help Pampm V'deo (a) Households consume more as they are more condent about the economy. Badgr (b) Oil prices fall temporarily. Oil is a natural resource for production. I (c) Infrastructure is destroyed and the productivity of the economy decreases permanently. Upload Choose a File