Capital Accumulation

  • A. Illustrate and explain the capital accumulation process for a county using the Solow Model.
  • Illustrate and explain the difficulties that low-income African countries are faced with in attempting to increase their quality of life.
  • Which type of economic growth is responsible for the majority of increases in quality of life: capital accumulation, population or productivity?Illustrate and explain.
  • A. Explain the functions of the Federal Reserve and what it uses to control the money supply.
  • A. Contrast the CPI and the GDP deflator and explain two problems with calculating the CPI.
  • Given the following information:
  • Derive the Keynesian Cross and explain what happens given an increase in Government spending.

B. True/False/Uncertain: A country should focus on increasing GDP per worker.Illustrate and explain.

B. Graph and explain money neutrality and the quantity theory of money.

B. Explain the impacts of inflation on an economy.

Year Price Jelly Beans Quantity of Jelly Beans Price of Tuna Quantity of Tuna
2020 5 10 20 4
2021 6 12 30 5
  1. Calculated the rate of inflation between the two years using GDP deflator.
  2. Calculated the rate of inflation between the two years using the CPI.Assume the average consumer basket is 4 Jelly Beans and 2 Tuna.

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