Given: Assume South Korea grows at 4% and United States grows at 1 % assume they both start from the same fictional income level, $10,000. (1) What will the incomes of the US and South Korea be in 20 years? (2) By how many multiples will each country's income grow in 20 years?
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Given: Assume South Korea grows at 4% and United States grows at 1 %
assume they both start from the same fictional income level, $10,000.
(1) What will the incomes of the US and South Korea be in 20 years?
(2) By how many multiples will each country's income grow in 20 years?
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- Assume there are two countries: South Korea grows at 4% and the United States grows at 1%. For the sake of simplicity, assume they both start from the same fictional income level, $10,000. What will the income of the United States and South Korea be in 20 years? By how many multiples will each country's income grow in 20 years?Assume the real GDP per capita in the UK has been steadily increasing for the past SIXTY years. Would we be correct in assuming the life expectancy of the average US citizen has also been steadily increasing in these past fifty years? Why or why not?Suppose a country has a real GDP per capita of $69,000 and grows at a constant rate for the next 49 years. How much larger (in percentage terms) is this country if its growth rate is 4.13% instead of 3.05% after 49 years of growth? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
- Real GDP in Country Z is growing at 5 per cent and its population is growing at 2 per cent. In Country L, real GDP is growing at 4 per cent and its population is growing at 0.5 per cent. Thus, Select one:- a. real GDP per person in Country L is growing at a faster rate than in Country Z. b. real GDP per person in Country L is growing at a rate that is not comparable to that in Country Z. c. real GDP per person in Country L is growing at the same rate as in Country Z. d. real GDP per person in Country Z is growing at a faster rate than in Country L.The productivity of a country is given by f(x,y)=15.21x0.438y0.562, where x is the amount of labor and y is the amount of capital. (A) Find fx(x,y) and fy(x,y). (B) Find fx(67,55) and fy(67,55), and interpret the results.A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. Thus, if Mexico's real GDP per person is growing at 7 percent per year, it will take about 10 years ( =70/7) to double. Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $ 11,000 per person, while it was about $ 44,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 5 percent per year, about how long will it take Mexico's real GDP per person to reach the level that the United States was at in 2005? (Hint: How many times would Mexico's 2005 real GDP per person have to double to reach the United States' 2005 real GDP per person?)
- What are the implications of this model for "convergence" of income levels and income growth rates - conditional on differences in endowments, government policies, and other exogenous factors - across countries? -Consider two economies (indexed by i = 1, 2) described by Yi(t ) = Ki(t )θ and Ki(t ) = siYi(t ), where θ > 1. Suppose that the two economies have the same initial value of K, but that s1 > s2. Show that Y1/Y2 is continually rising.A) Suppose there are two countries that are identical in every way with the following exception: Country A has a higher saving rate than country B. Given this information, we know with certainty that A) Country A will experience capital widening b) growth rate of output per sopita in the steady state is same in two countries c) K/N is higher in country B d) growth rate of output per capita in the steady state is higher in country A B) When expectations are taken into account, a policy to reduce budget deficit may not lead to a fall in output in the current period. Which of the followings cannot be listed as factor that offsets the detrimental impact of fiscal contraction on the output in the short run? a) Increasing tax rates harshly to finance deficit. b) Credibility of the deficit reduction program. c) Cutting wasteful spending and leaving room for future tax cuts. d) Backloading the deficit reduction, leaving larger cuts in government spending to the future while only small cuts…
- Assume there are two countries: South Korea and the United States. South Korea grows at 4 and the United States grows at 1. For the sake of simplicity, assume they both start from the same fictional income level, 10,000. What will the incomes of the United States and South Korea he in 20 years? By how many multiples will each countrys income grow in 20 years?Consider a nation in which the volume of goods and services is growing by 5 percent per year. What is the likely impact of this high rate of growth on the power and influence of its government relative to other countries experiencing slower rates of growth? What about the effect of this 5 percent growth on the nation’s living standards? Will these also necessarily grow by 5 percent per year, given population growth? Why or why not?Assume real per capita GDP in West Swimsuit is $8,000 while in South Darlinia it is $2,000. The annual growth rate in West Swimsuit is 2.33%, while in South Darlinia it is 7%. How many years will it take for South Darlinia to catch up to the real per capita GDP of West Swimsuit? What will the income of the two countries be when it is equal? type answer only. Do it correctly. Multiple votes will given accordingly.
