What statistic need to check before you began to celebrate
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What are some problems with this interpretation? Which do you think is the biggest problem with it, and why?
How can leaders simultaneously adapt their leadership styles to the development levels of individual group members and to the group as a whole?
The CPI and PPI are both measures of the price level. How are they different, and when might you prefer one of these measures over the other?
What is the GDP deflator, and how does it differ from the consumer and producer price indexes?
If you woke up in the morning and found that nominal GDP had doubled overnight, what statistic would you need to check before you began to celebrate? Why?
How long will it take for output to double? Now suppose technology grows at a rate of 2 percent. Recalculate your answers to ( a ) and ( b ).
If both labor and capital grow at 1 percent per year, what would the growth rate of total factor productivity have to be?
What would be the effect (on output) of increasing the capital stock by 10 percent? What would be the effect of increasing the pool of labor by 10 percent?
Discuss the adjustment process of the economy, and using Figure 3-5 , show what happens to growth in the short run and in the long run.
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