Practice
Answer first, then reveal. Anything you mark Unsure or Missed goes to your review queue.
7 of 11 have the textbook's official worked answer.
- 1
Using the data in Table 19.3, rank the seven regions of the world according to GDP and then according to GDP per capita. Population (in GDP Per GDP = Population × Per Capita GDP (in millions) Capita millions) East Asia and Pacific 2,006 $5,536 $10,450,032 South Asia 1,671 $1,482 $2,288,812 Sub-Saharan Africa 936.1 $1,657 $1,287,650 Latin America and Caribbean 588 $9,536 $5,339,390 Middle East and North Africa 345.4 $3,456 $1,541,900 Europe and Central Asia 272.2 $7,118 $1,862,384 TABLE 19.3GDP and Population of Seven Regions of the World
- 2
What are the drawbacks to analyzing the global economy on a regional basis?
- 3
Create a table that identifies the macroeconomic policies for a high-income country, a middle-income country, and a low-income country.
- 4
Use the data in the text to contrast the policy prescriptions of the high-income, middle-income, and low- income countries.
- 5
What are the different policy tools for dealing with cyclical unemployment?
- 6
Explain how the natural rate of unemployment may be higher in low-income countries.
- 7
How does indexing wage contracts to inflation help workers?
- 8
Use the AD/AS model to show how increases in government spending can lead to more inflation.
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- 9
Show, using the AD/AS model, how governments can use monetary policy to decrease the price level.
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- 10
What do international flows of capital have to do with trade imbalances?
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- 11
Use the demand-and-supply of foreign currency graph to determine what would happen to a small, open economy that experienced capital outflows.
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