1 TRUEFALSEUNCERTAIN Despite the Great Depression Canadian o

1. TRUE/FALSE/UNCERTAIN Despite the Great Depression, Canadian output higher in 1940 than in 1929 On a log scale, a variable that increases at 5% a year will move along an upward-sloping line, with slope 0.05 If Japan had continued to grow at the same rate during 1974 to 2010 as it had during 1950 to 1973, its output per capita in 2010 would have been more than twice U.S. output per capita. a. was c. d. The price of food is higher in poor countries than in rich countries.

Solution

a)True-From the profundities of depression in 1933, the economy recouped until 1937. This development was trailed by a brief yet extreme subsidence, and after that another time of financial development. It was not until the 1940s that past levels of yield were outperformed.Hence, the Canadian output was higher in 1940 than in 1929. It is generally acknowledged that the unemployment rate topped over 25 percent in 1933 and stayed over 14 percent into the 1940s.

b)True-The first order differentiation will give a positive value which shows the cuve is upward sloping.

c)Uncertain-There are a lot of factors which have to be considered, for example-the base year of both the countries also have to be factored in to see if the growth rates are truly a reflective of country\'s progress.

d)False-The price of food is higher in rich countries as people have higher incomes compared to the poorer countries and the standard of living is also high. Most of the poor countries are largely agrarian economies with high agricultural output.