Suppose that real GDP per capita of country A double in 20 years. The annual population growth rate is 1% and the annual inflation rate is 2%.

Q1. Using the rule 70, Calulate the annual economic growth rate of country A.

Q2. Calculate the annual growth rate of nominal GDP of country A.

Q3. Country A wants to increase population growth rate. This policy is related to which factor of economic growth?

• Infrastructure (Physical capital)
• Natural resources
• Labor (Population)
• Technology
• Human capital
• Law

Q4.

a. Suppose the government of country A develops new infrastructure. Yet country A does not experience economic growth. Explain why. ( Dont just simply say that a country needs other factors such as technonlgy and institutions to achieve econmincs growth.)

b. The government of country A wants to enforce law and order to achieve economic growth. Explain why enforcing law order can promote economic growth.