Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

The table presents the data for consumption, gross capital formation and depreciation in four economies, with all values expressed in US $. If technology is assumed to stay constant, which economy is most likely to show economic growth?

  • Aconsumption 200, gross capital formation 40, depreciation 50
  • Bconsumption 500, gross capital formation 200, depreciation 150
  • Cconsumption 1000, gross capital formation 1200, depreciation 1400
  • Dconsumption 20000, gross capital formation 6000, depreciation 6000

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