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In absolute terms, China's growth rate fell growth rate. OA. by more; by less B. by more; by more C. by less; by less O D. by less; by more than the U.S. growth rate. In relative terms, China's growth rate slowed by Countries might speed
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- What are the advantages of backwardness for economic growth?The Solow Growth Model is a model that is often used to explain the theoretical relationship between several factors that determine a country's economic growthcountry.(a) Explain what you know about the Solow Growth Model and what are the most important determinants of a country's long-term growth rate?(b) Within the framework of the Solow Growth Model, how does population growth affect a country's economic growth rate?(c) Still within the framework of the Solow Growth Model, how does technological progress affect a country's growth rate?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
- which one(s) is true (a) If an economy can raise its annual real GDP growth rate from 3.8 percent to 4.5 percent, its real GDP doubling time is reduced by 15 years. (b) Suppose that the government passes a law requiring households to increase savings 10% above previous levels. According to Solow's growth theory, in the long run output per capita will grow less rapidly. (c) If an economy has a real GDP doubling-time of 48 years, this will be increased to 56 years if annual GDP growth is reduced by 3.2 percentage points. (d) If K = 3000, n = 0.02, and depreciation, δ= 0.04 and g =0.03, then investment of 320 will hold (K/AL) constant.a) If you are given a choice to live in a country with high level of GDP and low growth rate or to live in a low level of GDP and a high growth rate, which option would you choose and why? b) Assume a hypothetical society that decides to reduce consumption (production of consumption goods) and increase investment (production of capital goods). How would this change affect economic growth? What groups in society would benefit from this change? What groups might be hurt? kindly solve all partspleasee quickkk !!!! Long-run economic growth can help alleviate the problems of poverty by... a. Requiring increased saving on the part of most of the population. b. Generating more resources that can be used to reduce income inequality. c. Reallocating income away from low-value production to increase the incentives for high-value production. d. Increasing future consumption for the middle class. e. Creating new low-paying jobs for the unemployed.
- Assume there is a second economy ( country B ) with everything identical to country A except for the rate of population growth , which is 2 percent . Answer the following questions for country B. Assume both countries start a k = 0 , which country grows more in the short run ( before steady state is reached ) , as given by the rate of growth of output per worker ? ( hint : the further away from steady state , the faster the growth towards it ). O. Country A O. Same for both O. Country B(a) Two countries, Country A and Country B, are described by the Solow growth model. Bothcountries are identical, except that the rate of labor-augmenting technological progress ishigher in A than in B.i. In which country is the steady-state growth rate of output per effective worker higher?ii. Does the Solow growth model predict that the two economies will converge to the samesteady state? (b) Based on the Solow growth model with population growth and labor-augmenting technologicalprogress, explain how each of the following policies would affect the steady-state level andsteady-state growth rate of total output per person:i. an increase in the government’s budget deficit ii. grants to support research and development (c) Consider a Solow model where the production function no longer exhibits diminishing returnsto capital accumulation. Assume the production function is now Y = AK. What happens tothe growth rate of per capita GDP over time?Based on our discussion of the determinants of economic growth, answer the following questions: • ’Devoting a larger share of national output to investment would help restore rapid economic growth and rising living standards.’ Based on our discussion of the determinants of economic growth, do you agree with the above statement? Explain why. • What could the policymakers (i.e., government, central bank) do to increase the investments in the economy? • Do you think that increasing the saving rate could help to increase the economic growth? Explain why. • Do you think that increasing the saving rate is always helpful? I.e., could we increase the saving rate to, say, 90 %? What could be some of the drawbacks of increasing the saving rate to a very high level? Explain.
- Logically Explain these parts: (a) Explain idea of convergence or catching-up effect in detail? (b)How poor countries can sustain high growth and development? (Note: Your answer should be in bullets)(a) Explain the role of capital, labor, and technology in the Solow growth model. (b) Illustrate the steady-state equilibrium in the Solow growth model using a graph, and explain how changes in the savings rate and technological progress affect the steady-state equilibrium. 2. Consider an economy with the following production function: Y = K^0.3 * (AL)^0.7, where Y is output, K is capital, L is labor, and A is the level of technology. (a) Calculate the marginal product of capital (MPK) and the marginal product of labor (MPL). (b) If the capital stock (K) is 100, the labor force (L) is 200, and the level of technology (A) is 2, find the level of output (Y) in this economy. 3. Suppose there is a negative demand shock that causes the aggregate demand equation in an economy to change from: AD1: Y = 2000 - 100P to AD2: Y = 1800 - 100P The aggregate supply equation is given by: AS: Y = 400 + 50P (a) Calculate the initial equilibrium price level (P1) and real output (Y1)…Assuming a country’s economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________. Question options: a) 30 b) 60 c) 50 d) 40 Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while CountryBeta grows at a sustained rate of 5 percent. In 14 years, Country Alpha’s GDP will be approximately _________ that of Country Beta. Question options: a) triple b) double c) one-half d) one-fourth
