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Consider a closed economy.
Do we observe changes in total factor productivity? How are they calculated?
Step by step
Solved in 4 steps
- Suppose y = k1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, real GDP per worker is ________. A. $2 B. $4 C. $8 D. $16Show graphically and explain how a rise in labor productivity affects the real wage rate.explain how capital could be a factor for the unemployment rate
- Between 2012 and 2022, the nominal GDP of Wonderland grew, on average, by 7% per year while her GDP deflator increased by 6% per year. She recorded an average labour growth rate of 3% per annum. During this period, the Gini-coefficient changed from 0.445 to 0.412. Regarding the above period, what can you say about the changes in the overall economic performance of Wonderland, including her output level, labour productivity and income distribution? Briefly explain your answers.The manufacturing sector is considered as one of the major sources of substantial employment generation in both developed and developing economies. But in Zambia, its contribution is still less than the highest standard set at 2014 when it accounted for 223 681 jobs of which 7.1 percent of these were formal jobs. In total, manufacturing sector jobs had represented 3.8 percent of the 5.9 million total employed population (Central Statistical Office, 2016). As a Student of Econometrics II, you are tasked to establish the determinants of the growth of the manufacturing sector in Zambia.a) Mention four relevant variables would you include in the model.b) Suppose you collect time series data on the proposed variables, explain the steps that you would take to finally decide which model you would run. Note: Explanation must be within ten (10) sentences.In terms of employment, the best way to describe the dependency ratio is what? A. Working population / unemployed population B. Number of dependents / working population C. Entire population / working population D. None of the above
- Discuss why you would expect the saving-borrowing pattern to differ by occupation (for example, for a doctor versus a plumber).Ecuador's economy has a production function that is as follows: Y = K2/5L3/5 The men in Ecuador generally stay home performing household chores while women work. Since the Ecuadorian state television stopped airing soap operas, many men decided to join the workforce and thus the labor force increased by 6.5%. However, recent storms have destroyed much of the capital stock of the country and thus the capital stock shrank by 2.5%. A. Assuming there is no change in total factor productivity in Ecuador, how would the output of Ecuador's economy change? B. How would labor productivity (output per worker) be affected by the increase in labor and decrease in capital stock? Explain. C. Assuming instead that Ecuador's economy grew by 4.9%, what would be the change in total factor productivity in the economy?What does the computed figure of the labour force participation rate of 24% tell us about the current economic situation?
- what is net economic position?Reply to parts a-d a) The relationship between the amount of inputs used in production and the amount of output produced is called an output function. False True b) Which factor would be captured in total factor productivity? an increase in infrastructure spending greater educational attainment increased extraction of natural resources the impact of a hurricane c) Countries with high inflation rates cannot have high rates of economic growth. False True d) Financial stability helps to improve standards of living and generate economic growth. True FalseExplain/Discuss Three ways that a reduced rate of interest influences real capital investment.