1. With the start of the campaign for presidential elections in 2020, candidatesproposed anew investment plan in infrastructures. Explain the possible futureconsequences for the U.S. economy in the long run. Is this policy going to haveon economic growth? (establish relationships between investment, production functionanyeffectand productivities). Draw the graphs, use the investment model, and explain.

With the presidential elections of the USA around the comer, the candidates have proposed different…

Answered: 1. With the start of the campaign for…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 4CQQ

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Suppose that every additional 3 percentage points in the investment rate boosts GDP growth by 1 percentage point. Assume also that all investment must be financed with consumer saving. Note: Investment rate = Investment/GDP The economy is currently characterized by Consumption: $11 trillion Saving (= Investment): $3 trillion GDP: $14 trillion If the goal is to raise the growth rate by 2 percentage points, a. by how much must investment increase? billion b. by how much must consumption decline? billion
(B)(Solow) An economy in which no TFP growth occurs is at steady state. An earthquakeoccurs destroying a fraction of the capital stock. Miraculously, no one is hurt. For this scenario, whathappens to the economy in the periods after the earthquake? Explain what happens to the level ofGDP, the level of the capital stock, and the growth rates of these variables in this example.
Answer the below questionsa. What do you understand by Real GDP? What is the Real GDP Growth Rate of India and China in 2019? What is the estimated real GDP growth rate of India and China in 2020? What is the projected real GDP growth rate of India and China in 2020 and 2022?b. What is the estimated 2022 GDP Loss (in percentage) in comparison to pre-covid levels (January 2020 forecast) in China and Other Emerging Economies in Asia other thanChina?
1)Mcq 1.the economy as whole saving must be equal to a.expenditure b.budget c.public saving d.investement 2.________ economy is one that does not interact with other economies a.stagnant growth b.small c.closed d.open 3.________ is an institution that sales shares to the public and uses the proceeds to buy a selection a.mutual fund b.stock c.bank d.central bank 4.can economy increase its real gdp per capita by Putting more of the population to work ? a.yes b.no c.depends on size of the economy d.depends on size of the number of population 5.________ is the economist's term for knowledge and skills that workers acquire through education, training, and experience. a.skilled labor b.work force c.labor d.human capital 6.________economy interact with other economies around the world a.closed b.open c.large d.growing 7.if the real value of household assets falls the aggregate demand a.decreases b.increases c.remains constant d.no one of the above 8.if the economy in recession we…
dont chatgpt i will 5 upvotes Which of the following economic news items suggests a less favourable environment for investment? Select one1: A. Rising interest rates B. The Government lowers personal income tax C. GDP growth has increased D. All of the conditions suggests a less favourable environment for investment E. All of the conditions suggests a more favourable environment for investment
16 True or False? The key difference between the Solow and production/expenditure models of the economy is that the Solow model endogenizes the saving rate.
Question 3Consider an economy described by the production function:Y = F(K, L) = K0.3 L0.7 a. What is the per-worker production function?b. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate.c. Assume that the depreciation rate is 10 percent per year. Make a table showing steadystate capital per worker, output per worker, and consumption per worker for saving ratesof 0 percent, 10 percent, 20 percent, 30 percent, and so on. (You will need a calculator with an exponent key for this.) What saving rate maximizes output per worker? What saving rate maximizes consumption per worker?
a.Assume that α(0, 1). Draw a diagram that describes the evolution of kt, and show that there exists a unique steady state, k* > 0. Label properly. also Find the expressions for the steady state variables k*, y*, and c* in terms of the parameters of the model. , b.Now, assume that α = 1. Draw a diagram that describes the evolution of kt, and show that income per worker can grow indefinitely in this case. Label properly. c.Discuss the key difference(s) between the scenario in a and b as much as you want.
a. How much more output does the $22 trillion U.S. economy produce when GDP increases by 1.0 percent? in BILLION not .22 b. By how much does this increase per capita income if the U.S. population is 340 million?
Question 1Some data at first might seem puzzling: The share of GDP devoted to investment was similar for Country liberty and Country Techno from 1970 - 2001. However, during these same years Country Techno had a 6 percent growth rate of average annual income per person, while Country liberty had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?
A country’s per-capita nominal GDP is growing at 5%, its price level is growingat 3% and its population is growing at 1%. How fast is its aggregate real GDPgrowing?(a) 2%(b) 3%(c) 4%(d) 5%
Although economic growth is typically measured by calculating the rate of changein real GDP, there are a few problems associated with the use of GDP as ameasure of economic growth.Identify these problems.(4)Q.3.2 Economic growth can originate from the demand side or from the supply side ofthe economy. Discuss the sources of economic growth on the demand side.

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