MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 20, Problem 13SQ
To determine

The point of lowest rate of economic growth.

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Economic Growth – End of Chapter Problem One analyst predicts that self-driving cars will ultimately reduce the number of cars that are produced. She argues that because self-driving cars can drive other people rather than sitting in people's driveways and garages, the United States will need to produce fewer cars. She argues that growth will slow because we are producing a decreasing number of cars each year. Do you agree? Why or why not? Producing fewer cars, everything else equal, will economic growth. However, the resources no longer used to produce cars be used to produce other items. Furthermore, the self-driving cars could opportunities for new businesses, which would have the effect. Therefore, the ultimate impact self-driving cars would have on economic growth is
figure 1.1 is a hypothetical economy producing SUV's and Cars. Economic growth is represented by
1. Over the period from B.C. 10,000 to A.D. 1, the world population is estimated to have increased from 4 million to 170 million, while the level of income per capita was constant over time. Assuming that the quantities of human and physical capital per worker did not change, and that the exponent on land in the production function is one-third, calculate the growth rate in productivity over this period. What was the annual growth rate of productivity, A?
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