12. Calculate per capita income for both countries. Express the answer in thousands.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
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Y=F (K, L) = AK0.3L0.7

Country L (millions) K (trillions)  Y (GDP)
X 78 0.26 1.1
Y 100 0.84 1.6

 

12. Calculate per capita income for both countries. Express the answer in thousands.
13. Which of the four government policies to stimulate saving is essential? That is,
which policy can on its own, regardless of the other policies, determine the level of the national
saving rate?
14. How does the centrality of institutions and property rights in economic growth help to
explain the predominance of rich countries in temperate climates and of poor countries in
the tropics?
Transcribed Image Text:12. Calculate per capita income for both countries. Express the answer in thousands. 13. Which of the four government policies to stimulate saving is essential? That is, which policy can on its own, regardless of the other policies, determine the level of the national saving rate? 14. How does the centrality of institutions and property rights in economic growth help to explain the predominance of rich countries in temperate climates and of poor countries in the tropics?
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