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Chapter 18: Q.16 (page 414)

What does this tell us about a comparison of the average rate of growth of real GDP since 2000 in emerging and developing nations compared with advanced nations?

Short Answer

Expert verified

a comparison of the average rate of growth of real GDP since 2000 in emerging and developing nations compared with advanced nations is shown.

Step by step solution

01

Given Information

GDP is the standard proportion of the worth added made through the development of labour and products in a country during a specific period. Accordingly, it additionally gauges the pay acquired from that creation or the aggregate sum spent on definite labour and products.

02

Explanation Part (1)

A comparison of the average rate of growth of real GDP since2000 in emerging and developing nations compared with advanced nations is shown.

03

Explanation Part (2)

Central African Republic, Congo Democratic Republic, Haiti, Liberia, Madagascar and Togo should be visible to have a populace development rate higher than the typical yearly per capita GDP development rate. This finishes into a typical yearly development pace of the genuine pay which is a lot slower than the development figures in the high-level nations

This is because of its aggressive and very much arranged development procedure. A coercive populace development strategy system combined with high development rates made it an exemption. The other non-industrial nations running against the norm neglected to accomplish the arrangement's purpose notwithstanding the population.

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Most popular questions from this chapter

Consider Table 18-1. Based on the basic arithmetic of economic growth, what were the average annual rates of real GDP growth since 1990 for those nations experiencing positive rates of annual growth of per capita real GDP?

How might Africa's productivity improvements help to explain the recent growth reversal between advanced nations and developing and emerging countries?

A developing country has determined that each additional 1billion of net investment in capital goods adds 0.01percentage point to its long-run average annual rate of growth of per capita real GDP.

a. Domestic entrepreneurs recently began to seek official approval to open a range of businesses employing capital resources valued at 20billion. If the entrepreneurs undertake these investments, by what fraction of a percentage point will the nation's long-run average annual rate of growth of per capita real GDP increase, other things being equal?

b. After weeks of effort trying to complete the first of 15stages of bureaucratic red tape necessary to obtain authorization to start their businesses, a number of entrepreneurs decide to drop their investment plans completely, and the amount of official investment that actually takes place turns out to be 10billion. Other things being equal, by what fraction of a percentage point will this decision reduce the nation's long-run average annual rate of growth of per capita real GDP from what it would have been if investment had been 20billion?

Suppose that a foreign resident has bought 20 percent of the shares of a company based in a developing nation but is experiencing difficulty determining whether the firm has responded to this purchase by engaging in risker behaviour. What type of investment has this foreign resident undertaken, and what type of asymmetric information problem is she or he experiencing?

Suppose that every 500 billion of dead capital reduces the average rate of growth in worldwide per capita real GDP by 0.1 percentage point. If there is 10 trillion in dead capital in the world, by how many percentage points does the existence of dead capital reduce average worldwide growth of per capita real GDP?
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