1. Suppose we have the following information for the country of Alfonso-ville.

Inflation rate = 4%

Unemployment rate = 5%,

Population growth rate = 0.5% per year

Real GDP growth rate = 1% per year

How long would it take for the country to double its real GDP?

40 years

56 years

Correct!

70 years

140 years

Never

2

Suppose for the country of Dunlap-ville, we have the following information:

Inflation rate = -2%

Unemployment rate = 10%

Population growth rate = 0.75% per year

Real GDP growth rate = 2% per year

How long would it take for the country to double its real GDP per capita?

40 years

Correct!

56 years

70 years

140 years

Never