5. Over the next year annual rate of 2.0%. In Sloland, however, growth is expected to be somewhat slower, at an average annual growth rate of 1.5%. If both countries have a real GDP per capita today of $20,000, how will their real GDP per capita differ in 100 years? Round all answers to wo places after the decimal point. Groland's real per capita GDP will be $ in 100 years. Sloland's real per capita GDP will be $ in 100 years. In 100 years, Sloland's real per capita GDP will be 61.18 % of Groland's.

Y7

2. Here, again, are the GDP per capita numbers for a number of countries shown in class. But rather than focus on welfare now, let us consider the effects of differences in growth rates on how the GDP ranking between countries evolves over time. GDP and Welfare across Countries, 2007 Per capita GDP 100.0 Country United States France United Kingdom Germany Italy Japan Hong Kong Singapore. South Korea Mexico Russia Brazil Chinal Indonesia. India Botswana South Africa Malawi 74.2 81.7 78.0 69.8 75.2 84.0 112.6 57.0 28.4 33.1 17.8 12.6 7.8 6.8 23.4 17.0 1.2 Welfare Life expectancy 100.0 110.5 104.6 98.3 92.9 86.3 63.9 524 41.0 17.7 16.8 12.0 5.0 4.5 3.2 2.4 2.4 0.3 1.000 77.8 1.187 80.8 1.098 2 79.4 1.103 79.5 1.213 81.3 1.291 82.5 1.272 82.4 1.148 80.4 1.082 79.3 0.913 76.0 0.561 67.5 0.753 72.1 0.797 72.6 0.624 67.7 0.520 64.1 0.215 52.1 0.194 51.0 0.295 50.9 Decomposition C/Y Leisure Inequality 1.000 1.000 1.000 0.814 0.801 0.651 0.953 1.175 1.121 0.776 0.859 1.022 1.067 0.832 0.822…

38. Suppose there are two countries that are identical in every way with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run: a. more information is needed to answer this question b. the growth rate of output per capita will be the same in the two countries c. the growth rate of output per capita will be greater in A than in B d. the growth rate of output per capita will be greater in B than in A QUESTION 39 39. In the long-run steady state, which of the following is affected by an economy's rate of saving? a. output per worker. b. capital per worker. c. the level of investment d. all of the above.

Assume that a leader country has real GDP per capita of $40,000, whereas a follower country has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 2 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?

5) Purpleland's Real GDP was 196 billion dollars in 2006 and 206 billion dollars in 2007. Purpleland's population growth rate was 2% in 2007. a. If Purpleland's 2007 economic growth rate and population growth rate are maintained, how long will it take for Purpleland's RGDP/capita to double? menu Ineuo end of b. If Purpleland's 2007 economic growth rate is maintained but the population growth rate falls to 1.5%, how long will it take for Purpleland's RGDP/capita to double? art