How does a decrease in the tax rate on income earned on saving affect saving, investment, the interest rate, and economic growth?

  Product  2023 Quantity  2023 Price  2024 Quantity  2024 Price  Hats     200  $20     250  $21  French fries  2,000  $1  2,300  $2  Digital  cameras      40  $200      50  $140  Consider the above data for a simple economy: Calculate nominal GDP and real GDP for 2024, using 2023 as the base year. Show your work.

When deflation occurs 

Which of the following causes the unemployment rate to understate the true extent of joblessness? 

Would you expect to see higher or lower growth rates for countries that start out with a relatively low level of real GDP per capita? Explain using the concept of “catch-up”.

If cyclical unemployment is eliminated in the economy, then 

If property rights are not enforced in a country, then 

If you want to earn a real interest rate of 3% on money you lend and you expect that inflation will be 2%, what nominal rate of interest should you charge? 

Which of the following will result in an increase in labor productivity? 

Suppose you are a famous international economic advisor. You have been asked to asses the possibilities for growth in an African country. It is a country abundant in labor and some natural resources. The capital-to-labor ratio is low. It has a free market economy. You have found that this country does not have a very strong and healthy banking system, however the political system is stable and the government does a good job protecting property rights. Assess this country’s prospects for growth. Recommend two things that would enhance the country’s growth.