Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 6, Problem 7E
a)
To determine
Identify the growth rate of output per person.
b)
To determine
The initial level of output per person.
c)
To determine
The initial level of output per person and output per person with double share.
d)
To determine
Choosing the scenario based on the changes.
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GDP per capita in the United States was approximately $63,000 in 2020. Use the growth formula (see below) to answer the following questions:
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present value = this year's GDP per capita
future value = GDP per capita in the future
r = rate of growth (in decimal form) per year
What will GDP per capita be in the year 2025 if it grows each year by 2.5 percent?
The horizontal axis of the figure below shows log of real personal income per person in 1880 for 47 U.S. states. The vertical axis shows the average annual growth rate of real personal income per capita for each state from 1880 to 2000. The two-letter abbreviation identifies the state. The solid line is the straight line that provides the best fit to the relation between the growth rate of income per person and the level of income per person in 1880. Based on this figure, discuss whether the U.S. states do or do not exhibit convergence. Explain.
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(a) Solve for the new growth rate of knowledge and yt.(b) Make a graph of yt over time using a ratio scale.
Chapter 6 Solutions
Macroeconomics (Fourth Edition)
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