1. If China’s real GDP grows at 9 percent a year, its population grows at 1 percent a year, and these growth rates continue, in what year will China’s real GDP per person be twice its 2008 level? 2....

1. If China’s real GDP grows at 9 percent a year, its population grows at 1 percent a year, and these growth rates continue, in what year will China’s real GDP per person be twice its 2008 level?

2. If a large increase in investment increases labour productivity, explain what will happen to

a. Potential GDP.

b. Employment.

c. The real wage rate.

If a severe drought decreases labour productivity, explain what will happen to

d. Potential GDP.

e. Employment.

f. The real wage rate.