For following three questions, use macroeconomic information given below:Year 2019Year 2020Output(Corn)People w/o JobsePeople w/o Jobs, but SearchingéPeople w/o Jobs, not SearchingePeople with JobsePrice per corn7000810070826071e1011700900$8a$94) What was the growth rate of average labor productivity from Year 2019 to Year 2020?«a. -10%b. -5%ec. 5%ed. 10%e5) What was the inflation rate between Year 2019 and Year 2020?a. 10.3%b. 12.5%c. 25.0%ed. 15.5%6) What was the unemployment rate in Year 2019 and Year 2020, respectively?+a. 3/38, 71/971b. 1/10, 41/450c. 3/35, 71/900-d. 1/70, 11/900-7) You may remember John Maynard Keynes said, "in the long run we are all dead." What is themost improper statement for Keynesian school?«a. In some cases, we need government intervention.“b. The market mechanism may not work well.c. In the long run, prices are not completely flexible.d. It is based on the experience of the Great Depression.“

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For following three questions, use macroeconomic information given below:“ Year 2020-e 8100 82 Year 2019 Output(Corn)² People w/o Jobs People w/o Jobs, but Searchinga People w/o Jobs, not Searching= People with Jobse Price per corn 7000 70- 60- 71e 10 700 11e 900 $92 $82 4) What was the growth rate of average labor productivity from Year 2019 to Year 2020?« a. -10%e b. -5% c. 5%e d. 10%e 5) What was the inflation rate between Year 2019 and Year 2020?“ a. 10.3% b. 12.5% c. 25.0% d. 15.5% 6) What was the unemployment rate in Year 2019 and Year 2020, respectively? a. 3/38, 71/971- b. 1/10, 41/450- c. 3/35, 71/900- d. 1/70, 11/900 Vou may remember John Mavnard Kevnes said "in the long run we are all dead » What is the

For following three questions, use macroeconomic information given below:“ Year 2020-e 8100 82 Year 2019 Output(Corn)² People w/o Jobs People w/o Jobs, but Searchinga People w/o Jobs, not Searching= People with Jobse Price per corn 7000 70- 60- 71e 10 700 11e 900 $92 $82 4) What was the growth rate of average labor productivity from Year 2019 to Year 2020?« a. -10%e b. -5% c. 5%e d. 10%e 5) What was the inflation rate between Year 2019 and Year 2020?“ a. 10.3% b. 12.5% c. 25.0% d. 15.5% 6) What was the unemployment rate in Year 2019 and Year 2020, respectively? a. 3/38, 71/971- b. 1/10, 41/450- c. 3/35, 71/900- d. 1/70, 11/900 Vou may remember John Mavnard Kevnes said "in the long run we are all dead » What is the

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 2P

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Similar questions

Say that the average worker in the U.S. economy is eight times as productive as an average worker in Mexico. If the productivity of U.S. workers grows at 2 for 25 years and the productivity of Mexicos workers grows at 6 for 25 years, which country will have higher worker productivity at that point?
An economy starts off with a GDP per capita of 5,000. How large will the GDP per capita be if it grows at an annual rate of 2 for 20 years? 2 for 40 years? 4 for 40 years? 6 for 40 years?
Explain what the Industrial Revolution was and where it began.
Consider the following data for a particular country. Year 1 Population (Millions) - 400 Real GDP (Trillions of $) - 16 Year 2 Population ( MIllinois ) - 480 Real GDO ( Trillions of $ ) - 24 Instructions: Enter your answers as a whole number. a. What is the growth rate of real GDP from year 1 to year 2 -blank percent b. What is the growth rate of real GDP per capita from year 1 to year 2 -blank percent Note: Donot given direct answer
Computing growth rates (II): Suppose k, l, and m grow at constant rates givenby g k, gl , and gm. What is the growth rate of y in each of the following cases?(a) y = k 1/3(b) y = k 1/3l 2/3(c) y = mk 1/3l 2/3(d) y = mk 1/4l 3/4(e) y = mk 3/4l 1/4(f ) y = 1klm2 1/2(g) y = 1kl2 1/4 11/m2 3/4
1. Country A and B both have the production functionY = F (K, L) = K ½L ½or Y = K0.5 L0.5 a) What is the per-worker production function, y= f (k)? Please make sure to write specificfunctional form of the per-worker production function. b) Assume that neither country experiences population growth nor technological progressand that 4 percent of capital depreciates each year. Assume further that country A saves 24percent of output each year and country B saves 16 percent of output each year. Using youranswer from part a) and the steady-state condition, find the steady-state level of capital perworker for each country. Then find the steady-state levels of income per worker for eachcountry and steady-state level of consumption per worker for each country.
Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in reponse to each of the following changes? Production function is Y=AK^1/3L^2/3 a. Investment rate doubles b. depreciation rate falls by 10% c. Productivity level rises by 10% d. Earthquake destrys 75% of the capital stock e. Generous immigration policy lead the population to double
Productivity is generally measured as: O output per year. O nominal output over time. O real output over time. O output per worker. A
Consider an economy with a Cobb-Douglas production function with α = 1/3 that begins in steady state with a growth rate of technological progress of g of 2 percent. Consider what happens when g increases to 3 percent. (a) What is the growth rate of output per worker before the change? What happens to this growth rate in the long run? (b) Perform a growth accounting exercise for the economy, decomposing the growth rate in output per capita into components contributed by capital per capita growth and technology growth. What is the contribution of the change in g to output per capita growth according to this formula? (c) In what sense is the growth accounting result in part b producing a misleading picture of this experiment? Explain why this is the case.
The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. Why have some countries reduced the gap between their incomes andthat of the United States and other countries failed to do so?
a)Interpret the data from the table and distinguish the relationship between the two countries. identify a public policy that can improve employment. State an example Unemployment Rate Year Country C Country D 2016 6.0 19.9 2017 5.8 19.1 2018 5.1 19.3 2019 5.0 15.6 2020 5.7 17.1 B)Interpret the data from the table and distinguish the relationship between the two countries. identify a public policy that can improve economic growth. State two examples Economic Growth rate Year Country A Country B 2016 4.0 3.2 2017 3.5 2.8 2018 2.6 2.0 2019 1.7 2.1 2020 -20.2 -2.1
Exercise 2: Growth and developmentCountries 1 and 2 have the production function: Yt = AiKαt L1−αt , where country 1 hasTotal Factor Productivity (TFP) of A1 = 25, country 2 has TFP A2 = 100, and α = 0.35for both. In the two countries population is constant and there is no technological progress.Every year capital depreciates by 6% in both countries. Country 1 saves 40% of output, andcountry 2 saves 20%.a) Write down the function of production per unit of labor. Suppose the two countriesstart with an initial capital stock (per unit of labor) of 500, what are the initial income andconsumption per unit of labor in both countries?b) Determine their steady state levels of capital, income and consumption per unit oflabor.c) Determine the difference in their steady state level of income per unit of labor, andhow much of that difference is due to differences in TFP and how much is due to differencesin capital per unit of labor.d) Suppose now that country 2 suddenly has access to the country 1…