Consider the following table displaying annual growth rates for nations X, Y, and Z, each of which
Question:
Consider the following table displaying annual growth rates for nations X, Y, and Z, each of which entered 2013 with real per capita GDP equal to $20,000.
Annual Growth Rate (%)
Country | 2013 | 2014 | 2015 | 2016 |
---|---|---|---|---|
X | 7 | 1 | 3 | 4 |
Y | 4 | 5 | 7 | 9 |
Z | 5 | 5 | 3 | 2 |
A) Which nation most likely experienced a sizable earthquake in late 2013 that destroyed a significant portion of its stock of capital goods, but was followed by speedy investments in rebuilding the nation's capital stock? What is this nation's per capita real GDP at the end of 2016, rounded to the nearest dollar?
B) What nation most likely adopted policies in 2013 that encouraged a gradual shift in production from capital goods to consumption goods? What is this nations per capita real GDP at the end of 2016, rounded to the nearest dollar?
C) Which nation most likely adopted policies in 2013 that encouraged a quick shift in production from consumption goods to capital goods? What is this nations per capita real GDP at the end of 2016, rounded to the nearest dollar?
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips