Question
This question refers to Table A. The country in question has based its economic growth on population growth -which includes immigration. Population increased from 20
This question refers to Table A. The country in question has based its economic growth on population growth -which includes immigration. Population increased from 20 million people (in the year 2010) to 30 million people (in 2020). The rate of inflation during the ten-year period has been zero (0) so that nominal GDP and real GDP are identical. The real wage remained constant during the ten-year period. The Gini ratio increased from 0.40 to 0.90. This is all the information available.
Items | Year 2010 Amount ($ billion) | Year 2020 Amount ($ billion) |
Household Consumption | 9.0 | 18.0 |
Gross Private domestic Investment | 3.0 | 6.0 |
Total Government Spending | 4.0 | 8.0 |
Exports | 7.0 | 14.0 |
Imports | 5.0 | 10.0 |
Gross Domestic Product (GDP) | ? | ? |
Table A
- Compute GDP for 2010 and 2020 [10 marks]
- Compute the economy's growth rate [10 marks]
- Did the standard of living improve? Explain carefully (it is not a "yes or no" question) [20 marks]
- Did the country experience "inclusive growth"? Explain carefully (it is not a "yes or no" question) [20 marks]
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