Diff 1 Page Ref 726320 Topic Catch up Learning Outcome Macro 17 Discuss the

Diff 1 page ref 726320 topic catch up learning

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Diff: 1Page Ref: 726/320Topic: Catch-upLearning Outcome: Macro 17: Discuss the fundamentals of key macroeconomics theoriesAACSB: Reflective Thinking 86) Which of the following is a true statement regarding the economic growth modelʹs predictions andhow it actually affects the real world? A) The growth model predicts that poor countries will catch up with rich countries, butlower-income industrialized countries are not catching up to higher-income industrializedcountries as a group.B) The growth model predicts that poor countries will catch up with rich countries, and this iswhat we observe across all developmental categories of countries.C) The growth model predicts that poor countries will never catch up with rich countries, butlower-income industrialized countries are catching up to higher-income industrializedcountries as a group.D) The growth model predicts that poor countries should catch up with rich countries, butdeveloping countries are not catching up to lower-income industrialized countries as agroup.Answer: D86)Diff: 2Page Ref: 726/320Topic: Catch-upLearning Outcome: Macro 17: Discuss the fundamentals of key macroeconomics theoriesAACSB: Reflective Thinking22
Figure 22-3 87)Refer to Figure 22-3.Based on theʺcatch-up lineʺdrawn above, poorer countries are more likelyto be at a point like ________, where growth in GDP is relatively ________, while richer countriesare more likely to be at a point like ________, where growth in GDP is relatively ________. 87)Diff: 2Page Ref: 726-727/320-321Topic: Catch-upLearning Outcome: Macro 17: Discuss the fundamentals of key macroeconomics theoriesAACSB: Reflective Thinking 88) Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, realGDP per capita is $9,000. Based on the economic growth model, what would you predict aboutthe growth rates in real GDP per capita across these two countries? 88)Diff: 2Page Ref: 726-727/320-321Topic: Catch-upLearning Outcome: Macro 17: Discuss the fundamentals of key macroeconomics theoriesAACSB: Reflective Thinking 23

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