1) What is the most important factor in explaining increases in real GDP per capita in the long run? 2) What is potential GDP? 3) Use the table to answer the following questions: Year 2000 2001 2002 2003 2004 Real GDP 61,784,000 63,840,000 68,394,000 70,781,000 85,534,000 a) Calculate the growth rate of real GDP for each year from 2001 to 2004; b) Calculate the average annual growth rate of real GDP for the period from 2001 to 2004: Growth rate for 2001 = Growth rate for 2002 = Growth rate for 2003 = Growth rate for 2004 = Average annual growth= 5) Assume that GDP per capita in Bahrain grew in the past at an average annual growth rate of 7 percent. If Bahrain's economy continues to growth at this rate, how many years will take for real GDP per capita to double? 6) What are the names of the following events in a business cycle? a) The high point of economic activity; b) The low point of economic activity; c) The period between the high point of economic activity and the following low point. d) The period between the low point of economic activity and the following high point. 7) According to World Development Indicators (WDI), the government of Tunisia realized an increase in its budget deficit from 0.6% of GDP in 2008 to 3.8% in 2009. Assuming that other factors that affect the demand and supply of loanable funds remain the same, what would be the effect of this larger budget deficit on the equilibrium real interest rate and the quantity of loanable funds?