The notion that developing countries can catch up or converge with developed countries is one of the key insights of a branch of economics called <u>development</u> economics.
Economics is the observation of scarcity and its implications for the use of assets, manufacturing of products and services, growth of manufacturing and welfare over time, and an outstanding form of other complicated issues of crucial problems to society.
Economics is the social science that researches the manufacturing, distribution, and intake of products and services. Economics specializes in the behavior and interactions of financial agents and how economies work.
Economics, at its very heart, is the study of people. It seeks to give an explanation for what drives human behavior, decisions, and reactions when confronted with difficulties or successes. Economics is an area that combines politics, sociology, psychology, and records.
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Annual interest rate that factors in compounding effects.
Formula: APY = ( 1 + APR/n )^n - 1
        
                    
             
        
        
        
Answer:
The price level will be equal to what it was before there was a rise in the aggregate supply.
Explanation:
In economics, natural gross domestic product (Natural Real GDP) can be described as the maximum level of real GDP that can be  sustained by an economy over the long term. The Natural Real GDP is also known as the potential output.
From the question, since the economy has moved back to producing Natural Real GDP which is the maximum real GDP sustainable, the price level will be equal to what it was before there was a rise in the aggregate supply.
Therefore, the price level will be equal to what it was before there was a rise in the aggregate supply.
 
        
             
        
        
        
Answer:
The answer is below
Explanation:
a) The dividend growth rate is given as D2/D1 - 1
Year            Dividend                        Growth rate
1                    $1.25                             
2                   $1.33                       ($1.33/ $1.25 - 1) 6.4%
3                   $1.4                          ($1.4/$1.33 - 1) 5.26%
4                   $1.51                         ($1.51/$1.4 -1)  7.86%  
        
The arithmetic average growth rate is the average of all the growth rates.
Arithmetic average growth rate = (6.4% + 5.26% + 7.86%) / 3 = 6.51%
The cost of annuity = (cost of common stock / Selling stock price) * 100% + Average growth rate
The cost of annuity = ($1.59 / $40) * 100% + 6.51% = 10.49%
b) The geometric growth rate is given as:
geometric average growth rate =
 
The cost of annuity = ($1.59 / $40) * 100% + 6.5% = 10.48%
 
        
             
        
        
        
Open-ended credit is credit that can be used repeatedly.
Example: A credit card
Close-ended credit is credit that has to be paid in full by a certain date
Example: A house loan (mortgage)