Assignment 12
DOC 
1. The slowdown of economic growth in the United States after 1965 may be the result of all the following
except

2. Using the rule of 72, what is the average annual growth rate of GDP needed for a country to double its size in just four years?

3. If Korea's average annual growth rate is 9.4 percent and the United States' average annual growth rate is 2.7 percent, the time required for Korea's real GDP to double will be

4. The lack of capital formation in lessdeveloped countries can be blamed on

5. Growth in total factor productivity equals

6. Per capita real GDP is of limited use as a measure of economic growth for all the following reasons
except

7. What is a nation's real GDP after seven years if the average annual growth rate is 5 percent and initial real output is $10 billion?

8. Which of the following statements about technology is
not
correct?

9. If a country's population growth exceeds the annual growth in real GDP,

10. When the growth in total factor productivity is zero, the growth in real GDP

11. Technological progress does
not
depend on

12. Longterm economic growth requires a permanent

13. Per capita real GDP

14. All the following would raise total factor productivity
except

15. What is real GDP after five years if Singapore's average annual growth rate is 9.8 percent and the economy initially produces at real GDP of S$80,500 million?

16. Economic growth refers to

17. Most developing countries

18. Assume you invest $550 in a certificate of deposit that has an annual interest rate of 4.5 percent. According to the rule of 72, what will your investment be worth after sixteen years?

19. The ability of a country to invest in capital goods is tied to

20. If the average annual population growth is 1.4 percent higher in lowincome countries than in industrial nations,

Essay Questions
1. Using the rule of 72, calculate the approximate doubling times for (a) a $2,000 savings account that pays 9 percent interest per year and (b) real GDP growing at 3 percent per year. What must the rate of interest be if you initial investment of $25,000 is worth $50,000 after twelve years?
2. How would an aging population affect economic growth?