1. Why can growth lead to a more unequal distribution of income? By assuming this is true, how is it possible for the poor to benefit from economic growth?
2. According to the Bureau of Labor Statistics, productivity in the United States grew at an annual rate of 3.7 percent from 2008 to 2009. During this same time, real GDP in the United States declined by 2.5 percent. Explain how productivity can increase when real GDP is declining. 9. The data in the table below represents real GDP from 2006 to 2009 for five countries.
a. Calculate the growth rate in real GDP for all five countries from 2006 to 2007. Which country experienced the highest rate of economic growth from 2006 to 2007?
b. Calculate the growth rate in real GDP for all five countries from 2007 to 2008. Which country experienced the highest rate of economic growth from 2007 to 2008?
c. Calculate the growth rate in real GDP for all five countries from 2008 to 2009. Which country experienced the highest rate of economic growth from 2008 to 2009?
d. Calculate the average annual growth rate in real GDP for all five countries from 2006 to 2009. Which country experienced the highest average annual rate of economic growth from 2006 to 2009?
