Reference no: EM131063630
An economy starts off with a per capita GDP of 16,000 euros.
Use the above scenario to answer questions 1 - 3. .
1. How large will the per capita GDP be if it grows at an annual rate of 3% for 10 years?
2. How large will the per capita GDP be if it grows at an annual rate of 3% for 30 years?
3. How large will the per capita GDP be if it grows at an annual rate of 6% for 30 years?
4. If the unemployment rate is 6 percent and the number of persons unemployed is 6 million, calculate the number of people employed. Please show your work.
5. An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. Calculate the real gain?(Please show your work)
6. Briefly describe the pattern for the U.S, economy with respect to its current account balance from the 1950s up to and including 2015.
Required return over firm weighted average cost of capital
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