Q1. A Growth at a rate of 2.5% may seem slow but this means a country GDP will double within 28 years. 100 (1+0.025)^28 = 200 if the growth rate is 3% then the economy will double its production within 24 years. Calculate the economic growth rate? Also, Do economies converge?
Q2. Indentify firms that periodically shut down their operations. What are the conditions that exist when they shut down their operations and the conditions that exist when they resume their operations.