Question

Multiple Choice Questions (10%) 1. Which country has experienced the highest GDP growth in recent years? A. China B. USA C. Russia D. Greece 2. Which country has the largest total annual real GDP? A. China B. USA C. Japan D. Germany What is the partial derivative of f(x.y)- Zx'y with respect to x? A. Zero B. Cannot be calculated analytically C. aže'y 3. 4. The relationship between the level of growth of an economic variable, g and its level, y, is best approximated as yr-I B. gt log yt-log ye1 D. log gt yt-Ye 5. For the study of economic growth, it is most helpful to examine movements ; for the study of business cycles, it is most helpful to examine in movements in A. Trend GDP: Trend GDP B. Trend GDP; Deviations from trend GDP C. Deviations from trend GDP: Trend GDP D. Deviations from Trend GDP; Deviations from trend GD

Answer 1

1.) China with the annual growth rate of 6.7

2.) USA with 18.67 trillion US dollars.

3.) Treat y and Z as constant when taking partial derivative with respect to x

$\frac{\delta f(x,y)}{\delta x} = \ aZx^{a-1}y^{b}$

right option is (c)

4.)

5.) Option (b) is the right answer.

Reason : Trend in GDP for study of economics growth because it will give tell you how economy has been performing in the past years and what is the expected performance. While for study of business cycle we study the deviations from trend in GDP whether there has been any fluctuations in the upward and downward trend in the economy during the period of boom and recession.