Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

The table gives the data for consumption, capital formation and depreciation in four economies, with all values expressed in US $. If the state of technology does not change, which economy is most likely to experience economic growth?

  • AEconomy A (consumption 100, capital formation 20, depreciation 30)
  • BEconomy B (consumption 500, capital formation 200, depreciation 200)
  • CEconomy C (consumption 1 000, capital formation 1 400, depreciation 1 200)
  • DEconomy D (consumption 20 000, capital formation 5 000, depreciation 6 000)

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