QUESTION 10 (continued) Based on the numbers in the previous problem economists have calculated that China's capital stock will increase by 3.8 $105.48 trillion by the end of the year. Does that mean the GDP will also increase by 3.89%? You can use the production function to predict the change in GDP and compare. Use , Y = AKU.4LO.6, and to estimate China's final GDP (in trillions of $s) and then calculat percent change from its initial GDP of $20.5 trillion. O China's GDP grows but not as fast as the capital stock O China's GDP grows at the same rate as its capital stock O China's GDP grows faster than its capital stock China's GDP doesn't grow. so none of the above

QUESTION 10 (continued) Based on the numbers in the previous problem economists have calculated that China's capital stock will increase by 3.8 $105.48 trillion by the end of the year. Does that mean the GDP will also increase by 3.89%? You can use the production function to predict the change in GDP and compare. Use , Y = AKU.4LO.6, and to estimate China's final GDP (in trillions of $s) and then calculat percent change from its initial GDP of $20.5 trillion. O China's GDP grows but not as fast as the capital stock O China's GDP grows at the same rate as its capital stock O China's GDP grows faster than its capital stock China's GDP doesn't grow. so none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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