# National Income and Economic Growth

a) Select one of the countries in the Excel file and using the data
provided calculate the following for the country you have chosen:
? Real GDP (in billions of US \$)
? Real GDP per capita (in terms of US \$ per person)
? The annual percentage growth rates of (total) real GDP and real GDP
per capita
? What is the average inflation rate based on GDP deflator between 1980
and 2011 in your selected country?
b) Using your answers to part (a) above, draw the graph of real GDP per
capita growth in Excel and paste the graph into your Word file. Briefly
describe the pattern of economic growth experienced by the country you
have selected. You should include in your answer any other graphs or
tables that you feel are relevant. [30 marks – max 500 words]
2 According to Economic historian Robert Fogel “improved gross nutrition
accounts for roughly 30 percent of the growth of per capita income in
Britain between 1790 and 1980.” Based on this claim, one can say that
nutrition is one of the major determinant of per capita income. Evaluate
this claim. What problem may arise here? [20 marks – max 500 words]
3 China’s GDP is forecast to exceed that of the USA by 2040. Does that
mean living standards in China will be better than in the USA by 2040?
4 The GDP growth rate in China has been around 10% since 1992. The GDP
growth rate in the G7 countries (USA, UK, France, Germany, Italy, Japan
and Canada) was around 3% in the same period. Explain this gap between
GDP growth rates of China and that of G7. (Hint: Think of the production
function and its features) [15 marks – max 250 words]
5 Assume that the latest prediction of a political analyst says that it
is more probable that the “A” party is going to win in the coming
election. “A” party tends towards the Keynesian approach to economic
policy. Assess the probability of each of the following policies being
implemented by a government led by “A” party. [15 marks – max 500 words]
? Investment grants for private firms.
? Deregulation, leading to greater competition in the market.
? A reduction in corporation tax.
? Government-funded workplace training schemes.
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