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 8E
(a)
To determine
The impact of investment rate doubling on per capita GDP change.
(b)
To determine
The impact of fall in depreciation rate on per capita GDP change.
(c)
To determine
The impact of productivity level increases by 10 percent on per capita GDP change.
(d)
To determine
The impact of destroying 75 percent capital stock on per capita GDP change.
(e)
To determine
The impact of generous immigration policy on per capita GDP change.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Identify ONE way that the data in the chart illustrate global economic differences between countries in the late twentieth century. b) Identify ONE similarity (other than GDP per capita) that might account for the low life expectancies of some of the world’s countries, as displayed in the chart. c) Explain ONE way in which longer life expectancies in some of the world’s countries, as displayed in the chart, have led to new political, economic, or social problems.
A country's rate of economic growth is important because.
A) an economy that grows too slowly is always involved in human rights violations.
B) a slowly growing economy always invades its neighboring countries in search of wealth.
C) a slowly growing economy experiences very slow growth in population.
D) an economy that grows too slowly fails to raise living standards of its citizens.
The local agriculture industry in Trinidad and Tobago has been declining for much of the past 30 years. Several initiatives were launched to tackle the main issues that farmers face (labour shortage, capital, thief, infrastructure, water, etc) and many have failed. Today the sector contributes about 1% to total GDP and we import over 75% of our food. However, we have a few bright spots in agriculture (primary)—poultry, egg, pineapples, water melons, paw paw and pig production—we are almost self-sufficient.
1. If you were asked to use the blue ocean strategy to tackle the issues outlined above, can you describe a new way to deal with those problems (best to choose one problem) by proposing a new start-up? How will it work differently from the current model that farmers use? (Please focus on production of commodities NOT retail or wholesale) (150 words)
Make sure you are suggesting your new company can deal with one (though not all) of the issues.
Chapter 5 Solutions
Macroeconomics (Fourth Edition)
Knowledge Booster
Similar questions
- In year 0, Country A has a real GDP per capita of $1,600. If Country A grows at a constant rate of 6% per year and Country A's population remains constant, what is Country A's real GDP per capita by year 20? (Round to the nearest dollar.) Provide your answer below: $$$2042 Answer neatly with proper explanation of itarrow_forwardKorea. Over the last 60 years or so, Korea has been one of the most successful economies in the world. What are the sources of this success? Consider the following data: GDP per capita is expressed in 2017 US dollars. Population and employment are in millions of heads. Capital is in thousands of dollars. Education is a human capital index based on the average years of schooling. (a) Compute the (average continuously compounded) growth rate of GDP per worker. (b) Use our growth accounting methodology to allocate growth in output per worker to TFP, capital per worker, and human capital. What factors are most important? (c) What is the growth rate of GDP per capita? How does it differ from growth in output per worker? Why?arrow_forwardQ)Consider three economies,each of which has GDP per capita of $100. Trend growth in these economies is 2%, 2.5% and 5% respectively. Calculate GDP per capita for each economy after 5, 10, 20, 50 and 100 years.arrow_forward
- A country will roughly double its GDP in twenty years if its annual growth rate is: Group of answer choices 2.5 percent. 12 percent. 7.5 percent. 3.5 percent.arrow_forwardConsider the following data for country A: Population (millions) Real GDP Country ($ billions) 50 A Calculate per capita real GDP (Enter your response rounded to the nearest integer.) Suppose that during the next 10 years, real GDP triples and population doubles in country A. What will per capita real GDP after 10 years have passed? (Enter your response rounded to the nearest integer.) $.arrow_forwardEast Asian countries grew at fast rates because they save and invest an unusually high percentage of their GDP. They started off as poor relative to their steady state They use their resources efficiently. They have stable property rights. All of the above. Which of the following statements best describes the rate of growth in productivity (TFP) in the United States since 1950? Productivity growth has been steady. Productivity has been growing more slowly every decade. Productivity grew quickly in the 1950s and 1960s, more slowly from the early 1970s through 1995, and then quickly again with a slowdown in recent years. Productivity grew slowly from the 1950s through the 1970s, and then began to accelerate, probably due to advances in computer technology. Productivity has been growing more quickly every decade since World War II Suppose that the money supply will grow by 20% in Argentina over the next 10 years. Velocity is constant. Real income will grow at 3%. The inflation…arrow_forward
- In 1980, Denmark had a GDP of $90 billion (measured in US dollars) and a population of 6.1 million. In 2000, Denmark had a GDP of $150 billion (measured in US dollars) and a population of 6.2 million. By what percentage did Denmark's GDP per capita rise between 1980 and 2000? Question 23 options: 205% 144% 64% 120%arrow_forwardSuppose a country has a real GDP per capita of $68,000 and grows at a constant rate for the next 36 years. How much larger (in percentage terms) is this country if its growth rate is 4.33% instead of 3.13% after 36 years of growth? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.arrow_forwardIn 1960, per-capita GDP in Japan was 1/3 of that in the UK. By 1990, Japan and the UK had equal GDP per capita. From 1960 to 1990, the UK per-capita GDP grew at an average rate of 2.2% per year. Calculate the average annual growth rate of per- capita GDP in Japan over the same time period.arrow_forward
- Q) The economist of country A is considering the following list of policies. For each of the following policies, determine which factor of growth that the policy is related to((1) natural resources; (2) physical capital; (3) human capital; (4) technology; or(5) institutions): a) Government allows more workers to immigrate b) Government relaxes the regulations for firms to borrow c) Government lends money to farmers to buy machines. d) Government plants more trees to protect the environment. e)Government encourages citizens to vote Solve this earlyarrow_forwardWhat are the current growth rates, population size and patterns of the United States, China, and Brazil. What are the discussions on events or policies that may have affected that countries population size/growth rate. Be sure to include reputable sources, such as the United Nations or your selected country's government websites. government's response to population changes (laws, policies, social changes, etc.) Give the current population size of the world and the current projection of the population size as the 21st century progressed.arrow_forwardIn 2000, a small nation has real GDP of $20,000 and a population of 150. By 2010, real GDP has grown to $30,000, and improved nutrition has allowed the population to increase to 220. Which statement must be true for this nation? In another 10 years, there will not be enough capital equipment for workers to use. Per capita GDP is higher in 2010 than it was in 2000. The high rate of population growth has caused real GDP per capita to fall. The productivity of labor in this nation has remained constant. As the nation's leading expert in economics, you have been asked to present a series of economic policies you believe would be helpful to the nation. Because of budget constraints, the legislature also wants you to rank your suggestions. Which suggestion would be last on your list of policy proposals? research and development funding strict population control measures improvement of the educational system reduction of trade barriersarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
