EBK ECON: MACRO4
4th Edition
ISBN: 9781305562097
Author: MCEACHERN
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 8, Problem 1.2PA
Sub-Part
A
To determine
Production possibilities frontier to demonstrate
- The effect of
PPF in next period upon the combination of goods selected in present period.
Sub-Part
B
To determine
Production possibilities frontier to demonstrate economic growth for:
b. More or less growth on choosing different point on PPF.
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Students have asked these similar questions
a) Prepare a table and line graph showing the unemployment and economic growth rate for a Caribbean country and a developed country (other than the US) for the last 5 years. Examine the relationship observed between the two countries.
b) Identify THREE public policies that can stimulate employment and facilitate economic growth in an economy.
Use examples to clearly illustrate how EACH policy can stimulate employment and facilitate economic growth in your country.
11. A. What are the two sources of economic growth given in the book?
Capital good (millions per month)
c
Consumption goods (millions per month) 1
C. Using the above graph where each point represents different countries, which country should have the
slowest economic growth? Why?
(Ctrl)
A country's choice of producing capital goods versus consumption goods today
a - has no effect on the country's PPF over time because resources are fixed.
b - would have the same effect on PPF over time since both drive economic growth evenly.
c - would expand PPF more over time if more capital goods are produced today.
d - would expand PPF more over time if more consumption goods are produced today.
Chapter 8 Solutions
EBK ECON: MACRO4
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Similar questions
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- Economic Growth – End of Chapter Problem Discuss an example of technological progress not mentioned in the chapter and how it impacted economic growth. a. Henry Ford revolutionized the automobile industry with new production techniques for the Model T. He introduced an assembly line process, replacing the previous process which had required the workers and their equipment to move around the plant to each car that was being built. This technological change made workers much more b. Ford also instituted an 8-hour work day and a minimum wage of $5 per day. This increased workers' and, for the first time, automobiles were affordable for large numbers of people. More customers meant production of the Model T generated , lowering the average cost to produce a car. These productivity gains enabled Ford to lower the price of the Model T from $825 in 1908 to $260 in 1925.arrow_forwardFigure: Economic Growth in Major World Regions GDP per capita, real U.S. dollars (1990) $30,000 20,000 10,000 0 United States Western Europe Latin America Former USSR China India Africa 1 1000 1500 1870 1900 1950 2000 Years (AD) 48. Refer to the figure above, which shows real GDP per capita over time in different regions of the world. The chart shows that all regions of the world: A. were poor at one time. B. have been relatively rich throughout most of human history. C. have experienced moderate growth throughout most of human history. D. remain poor today.arrow_forward7. Suppose that the economy's production function is Y = √K√LA where K is capital, L is labor, and A is the state of technology. Suppose that the saving rate (s) is equal to 6%, the rate of depreciation of capital (8) is equal to 5%, the number of workers grow at 5% per year and the rate of technological progress is 4%. (a) Find the steady state values of: iv. growth rate of output per worker growth rate of output v. (b) Suppose that the saving rate increases. What is its short-run and the long-run effect on the growth rate of per-capita output?arrow_forward
- Assume a hypothetical society that decides to reduce consumption (production of consumption goods) and increase investment (production of capital goods). i. How would this change affect economic growth? ii. What groups in society would benefit from this change? What groups might be hurt?arrow_forward5. Suppose that the economy's production function is Y = √K√LA where K is capital, L is labor, and A is the state of technology. Suppose that the saving rate (s) is equal to 2.4%, the rate of depreciation of capital (8) is equal to 3%, the number of workers grow at 0.7% per year and the rate of technological progress is 3%. (a) Find the steady state values of: i. 11. capital stock per effective worker output per effective worker growth rate of output per effective workerarrow_forwardGood 0 B .C Good X Refer to the provided graph. Which of the following movements would indicate economic growth? Multiple Choice from point B to point C from point A to point E from point A to point C from point C to point Darrow_forward
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