Question

#1. If GDP is currently $320 and the growth rate is 10 percent, how many years will it take for GDP to reach 754.54? Round to the nearest whole number.

#2. An emerging country has a real GDP of $1428.5 billion. After one year, real GDP has grown to $1457 billion. In percentage terms, what is the growth rate? Please round your answer to the nearest whole number.

#3. The aggregate production function shows diminishing returns. Diminishing returns refer to

A) each additional unit of labor producing a smaller additional amount of GDP.

B) real GDP always being less than potential GDP.

C) all of the attainable points on the production function.

D) each additional unit of labor producing a larger additional amount of GDP.

E) each additional unit of real GDP producing a smaller additional amount of labor.

Answer 1

diminishing returns means each new unit of input produces lesser and lesser output