If real GDP per capita is increasing, the rate of real GDP growth is: O less than the rate of population growth. O greater than the rate of population growth. less than the rate of inflation. greater than the rate of inflation.
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- A. Investment in "infrastructure" represents spending on: O roads, bridges, canals, etc. O human capital (education) O government institutions O innovation to physical capital B. Which of the following was not one of Thomas Malthus' assumptions regarding population and economic growth? O Per-capita income would increase. O The economy was agriculturally based O The supply of land was fixed O The population would continue to increaseAssume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital per effective worker ratio (K/NA) is 1. growing at a rate of δ + gA + gN. 2. growing at a rate of gA + gN. 3. growing at a rate of gN. 4. growing at a rate of gA. 5. none of the aboveIn this problem, we distinguish between labor and population in the Solow growth model. A proportion of the population, a, between zero and one, works. The production function is now written as Y = A(K^1/3)[(aL)^2/3] (a) How does an increase in a from 0.3 to 0.6 change steady state GDP? (b) Does it change the steady-state capital? Explain. (c) Suppose a rises steadily over time. How do you think would affect the growth rate of GDP?
- Assume that the growth rate of the capital stock in each period is determined by the level of output in the previous period. 1) An economy of 80 million people has ten percent of them engaged in research and development, where their productivity is 0.0035. The economy is on a balanced growth path, when suddenly 2.88 million people move from goods production into R&D, raising the fraction there to 13.6 percent. In the one period that begins with this labor reallocation, the growth rate of output is ________. [Refer to the instruction above.] A) 2.8% B) 0.0% C) 3.8% D) 2.2%Q1) Consider a Solow economy that is on its balanced growth path. Assume for simplicity that there is no technological progress. Now suppose that the rate of population growth falls.(a) What happens to the balanced-growth-path values of capital per worker, output per worker, and consumption per worker? Sketch the paths of these variables as the economy moves to its new balanced growth path.(b) Describe the effect of the fall in population growth on the path of output (that is, total output, not output per worker).Growth rates of per capita GDP: Compute the average annual growth rate ofper capita GDP in each of the cases below. Te levels are provided for 1980and 2014, measured in constant 2011 dollars.11
- The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same. Compute the doubling time for France’s per capita real GDP. Compute the doubling time for Korea’s per capita real GDP. What will France’s per capita real GDP be in 2045? What will Korea’s per capita real GDP be in 2045?A country has the following data on the average growth rates of its real GDP, population and capital accumulation over several decade: Real GDP growth rate=4.5%; Population growth rate=2%; Capital stock growth rate=4%. If the labor share to output=0.75 and capital share=0.25, how much is the contribution of improvement in total factor productivity (A) in the growth of real GDP?Suppose an economy's real GDP is $ 30,000 in year 1 and $ 31,200 in year 2. Instructions: In part a enter your answer as a whole number, in part b round your answer to 2 decimal places. a. What is the growth rate of its real GDP? ( in percentage) Assume that population is 100 in year 1 and 102 in year 2. b. What is the growth rate of real GDP per capita? ( in percentage)
- 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-fourthIndicate the statements True or False 4) Generally speaking, faster technological progress implies faster depreciation of human capital. 5)The long-run growth rate of real GDP per capita is determined solely by population growth rate.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 parts
