module 37 Long-run Economic Growth 375
Section 7 Economic Growth and Productivity
Answer (6 points)
1 point:Zimbabwe
1 point:It has a negative average annual growth rate of real GDP per capita.
1 point:It cannot be determined.
1 point:The figure provides data for growth rates, but not for the level of real
GDP per capita. Higher growth rates do not indicate higher levels.
1 point:China
1 point:A country has to have an average annual growth rate of 7% or higher
for real GDP to at least double in 10 years. China has a growth rate of 8.8%.
- Increases in real GDP per capita result mostly from changes
in what variable? Define that variable. What other factor
could also lead to increased real GDP per capita? Why is
this other factor not as significant?