Principles of Economics by Libby Rittenberg and Timothy Tregarthen.Chapter 23: Economic Growth
Part 1
The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same.
- Compute the doubling time for France’s per capita real GDP.
- Compute the doubling time for Korea’s per capita real GDP.
- What will France’s per capita real GDP be in 2045?
- What will Korea’s per capita real GDP be in 2045?
Part 2
Please explain in three well-structured paragraphs the basic arguments stated by the Real-Business-Cycle (RBC) Theory, regarding economic fluctuations. Cite references in apa format.
Principles of Economics by Libby Rittenberg and Timothy Tregarthen.Chapter 24: The Nature and Creation of Money
Part 3
Writing Assignment: Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds?
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