Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 5RQ
To determine
The total factor productivity in explaining differences in income across countries.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Consider a standard Solow-Swan model. A permanent increase in the level of total factor productivity will lead to an increase in investment per worker in the short run and in the long run will increase investment as a share of GDP.True or False? Explain.
Which factors explain the difference in per capita GDP between two countries according
to the Cobb-Douglas production model? Which factor is most important when explaining the
difference in per capita GDP between two countries?
when a country adds capital what is it doing to its productivity and GDP? Which variable in the Solow Model equation is it changing?
Chapter 5 Solutions
Macroeconomics (Fourth Edition)
Knowledge Booster
Similar questions
- What is the effect of an increase in total factor productivity on steady state population and consumption per worker in the Malthusian model?arrow_forwardWhen a country adds capital what is it doing to its productivity and GDP? Which variable in the Solow Model equation is it changing? When a country adds ideas what is it doing to its productivity and GDP? Which variable in the Solow Model equation is it changing?arrow_forwardwhen a country adds ideas what is it doing to its productivity and GDP? Which variable in the Solow Model equation is it changing?arrow_forward
- What were the effects of Divergence on economic growth in Europe and China?arrow_forwardDistinguish between the views held by Malthus and Solow as to the role population plays in achieving economic growth and development.arrow_forwardIncome per person exceeds $ 25,000 in many countries but it is below $ 1,000 per person in many other countries. Based on the Solow growth model, suggest at least four possible explanations for this gap in living standards.arrow_forward
- Consider a standard Solow-Swan model. A permanent increase in the level of total factor productivity will lead to an increase in investment per worker in the short run and in the long run will increase investment as a share of GDP.True or False? Explain.farrow_forwardAssume that the economy’s production function is Cobb Douglas so per-capita output is ? = k^α, where k is per-capita capital. Using the Solow growth model, explain the impact of the loss of capital on the growth rate of per-capita output in the years following the disaster.arrow_forwardThis question is about the Solow-Swan growth model.arrow_forward
- What is the Solow growth model?arrow_forwardThe Solow model without exogenous productivity growth predicts that rich countries with more capital will grow faster than poor countries with less capital, assuming other economic conditions are equal. Is this statement true or false? Explain.arrow_forwardDisaggregation on inputs was introduced in the capital market as economic growth models became more inclusive of realistic conditions and complexities of the economy (having physical and financial components). What is the relationship between labor and capital disaggregation, and what are the implications for developing countries seeking economic growth?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