Gce Model Questions Vol1 2020 Economics Question 49
Practice objective / multiple choice question 49 from the 2020 Gce Model Questions Vol1 Economics examination.
The estimated relationship between a country's annual GDP‑per‑capita growth rate (\(\Delta G\) in % points), its investment rate (\(I\) as % of GDP) and its income inequality (Gini coefficient \(G\)) is\n\[\n\Delta G = 0.5 I - 0.2 G + 1.2 .\n\]\nFor Country X the current investment rate is \(I = 15\%\) and its Gini coefficient is \(G = 40\).\n\n(a) Compute the predicted growth rate \(\Delta G\).\n\n(b) The government wishes to achieve at least a 4 % growth rate without changing the Gini coefficient. By how many percentage points must the investment rate be increased? Give the new required investment rate (to one decimal place).
Answer Options
About This Question
This is Gce Model Questions Vol1 2020 Economics Question 49. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.