Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 10.1.13PA
Sub part (a):
To determine
Consequence of shifting of labor in GDP (
Sub part (b):
To determine
Consequence of shifting of labor in GDP (Gross Domestic Product) growth rate of the country.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
to
per
* 6. U.S. growth: On page 52, we noted that the growth rate of per capita GDP.
the United States between 1870 and 1929 was slightly lower than 2.0%A
the growth rate between 1950 and 2018 was slightly higher. Using the follows
table, calculate the actual average annual growth rates during these twvo period
Year
US. income
1870
$3.629
1929
$9,827
1950
$16,294
$61,125
2018
There is a chart for quesition 2 that is attached as an image.
Suppose that work hours in New Zombie are 200 in year 1 and productivity is $8 per hour worked. What is New Zombie’s real GDP? If work hours increase to 210 in year 2 and productivity rises to $10 per hour, what is New Zombie’s rate of economic growth? Explain why sustained long-term economic growth comes from increases in labor productivity. Why do you think the trend rate of U.S. productivity growth has increased since the earlier 1973–1995 period?
Hint: The quantity of labor and increases in labor productivity are important sources of economic growth. Between 1953 and 2015, in the US economy the labor force increased from 63 million to 158 million workers. Productivity growth has usually been the more significant factor. To calculate real GDP in a given year you have to multiply hours worked by productivity.
2. Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its…
Briefly discuss the macroeconomic benefits of a highly educated and skilled work force and then explain how government could do more to encourage increased R&D activities.
Chapter 10 Solutions
Macroeconomics (7th Edition)
Ch. 10 - Prob. 10.1.1RQCh. 10 - Prob. 10.1.2RQCh. 10 - Prob. 10.1.3RQCh. 10 - Prob. 10.1.4RQCh. 10 - Prob. 10.1.5PACh. 10 - Prob. 10.1.6PACh. 10 - Prob. 10.1.7PACh. 10 - Prob. 10.1.8PACh. 10 - Prob. 10.1.9PACh. 10 - Prob. 10.1.10PA
Ch. 10 - Prob. 10.1.11PACh. 10 - Prob. 10.1.12PACh. 10 - Prob. 10.1.13PACh. 10 - Prob. 10.1.14PACh. 10 - Prob. 10.2.1RQCh. 10 - Prob. 10.2.2RQCh. 10 - Prob. 10.2.3RQCh. 10 - Prob. 10.2.5PACh. 10 - Prob. 10.2.6PACh. 10 - Prob. 10.2.7PACh. 10 - Prob. 10.2.8PACh. 10 - Prob. 10.2.9PACh. 10 - Prob. 10.2.10PACh. 10 - Prob. 10.2.11PACh. 10 - Prob. 10.2.12PACh. 10 - Prob. 10.2.13PACh. 10 - Prob. 10.2.14PACh. 10 - Prob. 10.2.15PACh. 10 - Prob. 10.2.17PACh. 10 - Prob. 10.3.2RQCh. 10 - Prob. 10.3.3RQCh. 10 - Prob. 10.3.4PACh. 10 - Prob. 10.3.5PACh. 10 - Prob. 10.3.6PACh. 10 - Prob. 10.3.7PACh. 10 - Prob. 10.3.8PACh. 10 - Prob. 10.3.9PACh. 10 - Prob. 10.1RDECh. 10 - Prob. 10.2RDECh. 10 - Prob. 10.3RDECh. 10 - Prob. 10.2CTE
Knowledge Booster
Similar questions
- Q2b: Consider the following data on the Pakistan economy: Sub-parts to be solved Nominal GDP GDP Deflator Year (in billions of rupees) (base year 2012) 2018 21,501 111.4 1998 9,163 76.3 1) What was the growth rate of nominal GDP between 1998 and 2018? (Hint: The growth rate of a variable X over an N-year period is calculated as [(Xfinal/Xinitial)1/N – 1] x 100). 2) What was the growth rate of the GDP deflator between 1998 and 2018? 3) What was real GDP in 1998 measured in 2012 prices? 4) What was real GDP in 2018 measured in 2012 prices? 5) What was the growth rate of real GDP between 1998 and 2018? 6) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.arrow_forwardWhy is real GDP a better measure of economic growth than nominal GDP?arrow_forwardor 1. What is the metric we use to measure economic growth? China? 2. From 1990-2009, what was the average annual growth rate for the US? 3. What is per capital GDP? (review from Unit 5) 4. What does it mean to become more productive? 5. What are two ways society can increase productivity? a. b. 6. Briefly explain capital deepening. 7. We used to believe that innovation happened randomly and we had no way to induce innovation. The New Growth Theory is the idea that innovation is not random, but happens because of financial incentives. Therefore, if society rewards innovation, we will continue to have innovation, and therefore continued economic growth. What is one way society can financially incentivize innovation? 8. A nation cannot experience economic growth unless it has underlying societal institutions in place. What are these institutions? 9. Is democracy an institution that is necessary for growth? What evidence do you have to support your response?arrow_forward
- Use the data on real GDP in the following table to answer the questions. Country Mexico France 2017 2018 2019 $4,553 $4,632 $4,630 5,432 5,531 5,613 United States 17,432 18,144 19,092 Note: All values are in billions of domestic currency at constant prices. Source: International Monetary Fund, World Outlook Database, January 2021. The country that experienced the highest rate of economic growth during 2018 is percentage rounded to two decimal places.) The country that experienced the highest average annual growth rate between 2018 and 2020 is (Enter your response as a percentage rounded to two decimal places.) 2020 $4,228 5,145 18,423 The country that experienced the largest percentage decline in real during 2020 is rounded to two decimal places and include a minus sign.) with a growth rate of %. (Enter your response as a with an average annual growth rate of with a growth rate of % (Enter your response as a percentage Time Remaining: 02:07:08 Nextarrow_forwardWhy would an economist use real GDP rather than nominal GDP to measure growth? Nominal GDP allows you to compare GDP from different years Nominal GDP is a better measure of a nation's standard of living Real GDP is adjusted for inflation and reflects output/production more accurately Real GDP is calculated for a longer period of time than does nominal GDParrow_forwardExplain why the growth rate in GDP in current prices does not provide information about how quickly the economy is really growing.arrow_forward
- Answer the following macroeconomics questions.i. What is the difference between nominal GDP and real GDP? Which one of them is used to calculate the economic growth rate? Justify your answer.ii. Give the equation used to calculate the unemployment rate. State the different types of unemployment. In your opinion, which type is the most problematic one? Justify your answer.iii. Governments may achieve certain economic goals; say controlling inflation, by implementing fiscal and/or monetary policies. Briefly explain the difference between fiscal and monetary policies.arrow_forwardThe following abstract appeared in gultnews.com on January 14th, 2019. "The UAE is forecast to achieve an annual average real GDP growth rate of 3.89% between 2019 and 2023, supported by an increase in investment Nows and private consumption A Would the nominal rate be less, the same or more than 3.8% Explain your answer discussing the difference between nominal GDP and8 GDP is used up by FOUR ultimate users Who are they? C Discuss whether the method that you use to calculate GDP influence the final resultarrow_forwardAnswer the question based on the table below. Year Nominal GDP (in millions) GDP Deflator Real GDP Real GDP Growth Rate Population DGP 1988 450 65 30000 1989 470 69 31000 1990 500 71 32000 1991 550 73 33000 What is the Real GDP growth rate in 1990? (round it to the nearest million) 5.1% 3.4% 6.3% 4.7%arrow_forward
- What creates or stimulates the rate of economic growth in the economy, in macroeconomicsarrow_forwardRefer to Table 4.3 “The Model’s Prediction for Per Capital GDP” on page 83. Why is the “observed per capita GDP” in the last column 1.000 for the U.S.? A. The U.S. per capita GDP was $1,000 in real terms for the year given in the table B. It means the U.S. economy produces 100% of what it’s supposed to produce C. It means the U.S. economy uses 100% of all available capital in the country D. U.S. values are set, or normalized, to 1 while the other countries’ values are all relative to the U.S. valuesarrow_forwardWhy does GDP depend on productivity in the long run?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning