January 20, 2020
IMF finds new reasons to worry about the global economy
Questions
- Why did the IMF downgrade its world economic growth forecast for 2020?
- If the current forecasted growth rate of world real GDP continues at 3.3 percent, when will the size of the world economy double?
- Now consider the time required to double world real GDP per person. How does this time frame compare to your answer to #2? Explain.
- What recommendations would you make to world governments to increase economic growth?
- With a given quantity of labor producing a given quantity of potential GDP, what will result in a higher standard of living—an increase in aggregate hours that results from an increase in population or an equal increase in aggregate hours that results from an increase in labor productivity? Explain.
- Draw a graph to illustrate your answer to #5.