Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 23, Problem 13APA
(a)
To determine
Explain what happens to potential GDP if investment and labor productivity increases.
(b)
To determine
Explain what happens to employment if investment and labor productivity increases.
(c)
To determine
Explain what happens to real wage rate if investment and labor productivity increases.
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Students have asked these similar questions
When production in an economy grows more quickly than the population in that economy, which of the following must be occurring?
A.
Incomes are growing at a slower rate than the population.
B.
Real GDP is falling.
C.
Real GDP per capita is constant.
D.
Real GDP per capita is rising.
E.
Living standards are falling.
QUESTION 18
If immigration laws become more strict and many foreign citizens are not allowed to work and are forced to leave the United States,
A.
there is a movement down along the aggregate supply curve.
B.
the potential GDP curve will shift to the right.
C.
the aggregate demand curve will shift to the left.
D.
there is a movement up along the aggregate supply curve.
E.
the potential GDP curve will shift to the lef
Suppose an economy's real GDP is $5,000 billion. There are 125 million workers, each working an average
of 2,000 hours per year.
a. What is labor productivity per hour in this economy?
What is the GDP growth rate?
Chapter 23 Solutions
Macroeconomics
Ch. 23.1 - Prob. 1RQCh. 23.1 - Prob. 2RQCh. 23.1 - Prob. 3RQCh. 23.2 - Prob. 1RQCh. 23.2 - Prob. 2RQCh. 23.2 - Prob. 3RQCh. 23.3 - Prob. 1RQCh. 23.3 - Prob. 2RQCh. 23.3 - Prob. 3RQCh. 23.3 - Prob. 4RQ
Ch. 23.3 - Prob. 5RQCh. 23.3 - Prob. 6RQCh. 23.4 - Prob. 1RQCh. 23.4 - Prob. 2RQCh. 23.4 - Prob. 3RQCh. 23.5 - Prob. 1RQCh. 23.5 - Prob. 2RQCh. 23.5 - Prob. 3RQCh. 23 - Prob. 1SPACh. 23 - Prob. 2SPACh. 23 - Prob. 3SPACh. 23 - Prob. 4SPACh. 23 - Prob. 5SPACh. 23 - Prob. 6SPACh. 23 - Prob. 7SPACh. 23 - Prob. 8SPACh. 23 - Prob. 9APACh. 23 - Prob. 10APACh. 23 - Prob. 11APACh. 23 - Prob. 12APACh. 23 - Prob. 13APACh. 23 - Prob. 14APACh. 23 - Prob. 15APACh. 23 - Prob. 16APACh. 23 - Prob. 17APACh. 23 - Prob. 18APACh. 23 - Prob. 19APACh. 23 - Prob. 20APACh. 23 - Prob. 21APACh. 23 - Prob. 22APACh. 23 - Prob. 23APACh. 23 - Prob. 24APACh. 23 - Prob. 25APA
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Similar questions
- Explain the Growth Rate of GDP and the Term Spread?arrow_forwardHow come higher saving leads to more rapid growth?arrow_forwardHow do we measure labor productivity? How do changes in labor productivity affect the U.S. standard of living? Does an increase in labor productivity always leads to an increase in standard of living, explain?arrow_forward
- An increase in would lead to an increase in long-run economic growth. government taxes and fees resources and technology tariffs O prices and interest ratesarrow_forwardHow is economic growth measured? Question 1Answer a. The percentage change in the employment rate b. The percentage change in income taxes collected by the government c. The percentage change in real GDP d. The percentage change in the unemployment ratearrow_forwardEconomic growth is most affected by: a. money supply b. discovering natural resources c. productivity d. growth in labor forcearrow_forward
- What is the likely effect on a country's labor productivity if there is significant investment in technology and employee training? A. Labor productivity will decrease. B. Labor productivity will remain unchanged. C. Labor productivity will increase. D. Labor productivity will first increase, then decrease over time.arrow_forwardHow does a tax on interest income influence the economic growth rate? A tax on interest income drives a wedge between the interest rate _______ by borrowers and the interest rate _______ by lenders, which _______ the amount of saving and investment and _______ the economic growth rate. A. received; paid; lowers; slows B. paid; received; increases; increases C. received; paid; increases; increases D. paid; received; lowers; slows Thanksarrow_forwardAustralia's real GDP was $A1,730 in 2017 and $A1,782 in 2018. Australia's population was 24.6 million in 2017 and 25.0 million in 2018. Calculate a. The growth rate of real GDP. b. The growth rate of real GDP per person. c. The approximate number of years it will take for real GDP per person in Australia to double if the current real GDP growth rate and population growth rate are maintained.arrow_forward
- IS GDP important for economic growtharrow_forwardIf a country's saving rate increases, what happens in the long run? a. Productivity increases. b. Real GDP per person decreases. c. Productivity does not change. d. Real GDP per person does not change.arrow_forwardBrazil’s real GDP was 1,520 trillion reais in 2011 and 1,585 trillion reais in 2012. Brazil’s population was 195 million in 2011 and 196.5 million in 2012. Calculate a. The growth rate of real GDP b. The growth rate of real GDP per person c. The approximate number of years it takes for real GDP per person to double when the real GDP growth rate and the population growth rate are maintained.arrow_forward
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