Question

1-)) Calculate the change in the number of years it will take for real GDP per person in India to double if real GDP per person increases from 44 percent a year to 77 percent a year.

​>>> Answer to 1 decimal place.

When real GDP per person grows at 44 percent a​ year, real GDP per person in India doubles in -----??------ years.

2-)) If the AD curve shifts​ rightward, then

A.potential GDP increases.

B.both the price level and real GDP will increase.

C.the price level will not change but real GDP will increase.

D.both the price level and real GDP will decrease.

E.the price level will increase but no change will occur in real GDP.

3-)) An economy is at a full−employment​equilibrium, and then the aggregate demand curve shifts leftward. As a​ result, the price level​ ________ and real GDP​ ________.

A.​falls; increases

B.​rises; increases

C.​falls; decreases

D.​rises; decreases

E.​falls; does not change

4-)) The AD curve is a graph depicting the

A.relationship between the price level and the quantity of real GDP demanded.

B.relationship between the price level and potential GDP.

C.business cycle during expansions and recessions.

D.relationship between the aggregate quantity of real GDP demanded and the aggregate quantity of real GDP supplied.

E.relationship between the price level and the quantity of real GDP supplied.

5-))Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand​ curve?

A.a change in government expenditures on goods and services

B.a change in monetary policy

C.a change in foreign incomes

D.a change in expectations about the future

E.a change in the price level

6-))Aggregate demand is the relationship between the quantity of​ _____ demanded and the​ _____ when all other influences on expenditure plans remain the same.

A.real​ GDP; exchange rate

B.real​ GDP; price level

C.nominal​ GDP; interest rate

D.nominal​ GDP; quantity of output supplied

Answer 1

1. When real GDP per person was 44%, then it would take = 70/44 or 1.6 years to double itself. When the real GDP increases to 77%, then it would take = 70/77 or 0.9 years to double itself. therefore, it the growth rate persists at 77%, then it would double itself 0.7 years earlier, this is the change in the number of years.

This is according to rule of 70, where we divide the growth percentage by 70 to get the number of years.

2. Option B is correct.

When AD curve shifts to the right, price level and output both increases.

3. Option C is correct.

When the AD curve shifts inwards to the left, with full employment, there is a recessionary gap reducing both the prices and the real GDP.

4. Option A is correct.

AD curve depicts the relationship between the price level in the economy and the real GDP or the output produced.

5. Option E is correct.

With all other factors there will be a shift of the curve, with only change in price there will be a movement along the curve.

6. Option B is correct.

AD curve depicts the relationship between the price level in the economy and the real GDP or the output produced.