Economic growth Assignment Example | Topics and Well Written Essays - 250 words

Economic growth - Assignment Example Viele Accounting. Pg 224-225, Question p6 a) Truck 28200 Notes Payable 28200 b) Truck 28200 Capital lease liability (4.6229 * 6100) 28200 Depreciation Expense 4700 Accumulated Depreciation 4700 c) Interest Expense 2256 Capital Lease Liability 3844 Cash 6100 d) The expenses for the first year are Interest Expense and Depreciation = 2256 + 4700 = $6956 Somers and Seville. Exploration 8. Chapter 6 pg 118. a) 67.38 is the population in our base year 1980. We are considering the growth rate from this year which is around 102% or 1.206. This shows the rate of increase in population each year from 1980. b) 67.38. (1.206)^10 = 438.53 Million. McConnell and Brue pg 151. Chapter 8. Study Question 1 and 2. Real GDP growth Rate = (31200-30000)/30000 * 100 = 4% GDP per Capita in year 1 = 30000/100 = 300 GDP Per Capital in year 2 = 31200/102 = 305.9 GDP per capita growth = (305.9-300)/300 = 1.96% Economic growth is a measure of the increase in the productive potential of a country. It is important because it reduces or lessens the problem of scarcity. Since it helps the economy to produce more, more goods are produced and everyone has more goods for consumption and as a result, living standard in the economy increases. This is why economists rate economic growth as a matter of great importance. We can use the 70 rule to determine the effect of the difference between 2.5 and 3 percent of economic growth over few decades. If an economy is growing at 2.5%, the economic growth or total output will double from the current level in 70/2.5= 28 years.