What is the key idea of classical growth theory that leads to the dismal outcome?

2. What, according to neoclassical growth theory, is the fundamental cause of economic growth?

3. Brazils real GDP was , trillion reais in and , trillion reais in . Brazils

population was 195 million in 2011 and 196.5 million in 2012. Calculate

a. The growth rate of real GDP.

b. The growth rate of real GDP per person.

c. The approximate number of years it takes for real GDP per person in Brazil to double if the

2012 growth rate of real GDP and the population growth rate are maintained.

4. What determines the demand for loanable funds and what makes it change?

5. What determines the supply of loanable funds and what makes it change?