Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Chapter 5, Problem 9E
(a)
To determine
The growth rate of per capita
(b)
To determine
The solution to growth rate of per capita GDP as a function of current level of Kt.
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Students have asked these similar questions
All values are 2005 dollars.
Part a) Calculate the growth of GDP/capita in each column.
Part b) Calculate the average annual growth in GDP/capita for japan, uk, and USA from 1980 to 2010 using the growth formula in the image. In the growth function, t is the current time period, t-j is the original time period, and g is the annual growth rate.
Part c) In parts a and b, are the calculated values for nominal gdp/capita or real gdp/capita. Explain why.
In 1960, per-capita GDP in Japan was 1/3 of that in
the UK. By 1990, Japan and the UK had equal GDP
per capita. From 1960 to 1990, the UK per-capita
GDP grew at an average rate of 2.2% per year.
Calculate the average annual growth rate of per-
capita GDP in Japan over the same time period.
GDP per capita in the United States was approximately $63,000 in 2020. Use the growth formula (see below) to answer the following questions:
Growth formula: (future value) = (present value) × (1 + r)t
present value = this year's GDP per capita
future value = GDP per capita in the future
r = rate of growth (in decimal form) per year
What will GDP per capita be in the year 2025 if it grows each year by 2.5 percent?
Chapter 5 Solutions
Macroeconomics (Fourth Edition)
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