Imagine two countries, i and j. You have the following information: si = 2 sj s= saving rate hi= hj h=human capital 2Ai = Aj A=technology What can you infer about long-run income per worker differences between these countries? Explain formally.
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Imagine two countries, i and j. You have the following information:
- si = 2 sj s= saving rate
- hi= hj h=human capital
- 2Ai = Aj A=technology
What can you infer about long-run income per worker differences between these countries? Explain formally.
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- Real GDP per capita is 49,773 (measured in constant 2017 International Dollar, same for the following numbers) in the year 2019 for Canada, and 62,491 for the United States. Real capital stock per capita is 225,268 in the year 2019 for Canada and 209,866 for the United States. Decompose the differences in real GDP per capita between Canada and the United States into the contribution from productivity and that from capital accumulation. Explain using your results why real GDP per capita is lower in Canada than in the United States. You can use a capital share α of 1/3.Q14 Which of the following statements is false? Select one: a. Even if a country had no technological progress, its total factor productivity could increase. b. Even if a country's workforce stayed the same, there could be an increase in human capital. c. If a country's GDP per head rose by 3% a year, it would take about 33 years for its output GDP per head to double. d. Even if a country acquired no extra resources, its output could grow.Consider a small island country whose only industry is printing. The following table presents information about this small economy in two different years. Complete the table by calculating physical capital per worker and labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor.
- When using AD/AS analysis to illustrate changes within an economy, which of the following would NOT need to be considered when looking at changes to economic growth? Select one: a. More efficient use of the capital stock b. Developing a more efficient capital and finance sector c. Increased labour productivity d. Increased availability of social capitalSuppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run output per capita will be greater in B than in A. economic growth will be higher in A than in B. more information is needed to answer this question. output per capita will be greater in A than in B.Consider a small island country whose only industry is weaving. The following table shows information about the small economy in two different years. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Year Physical Capital Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity (Looms) (Workers) (Looms) (Hours) (Garments) (Garments per hour of labor) 2016 160 40 2,000 20,000 2017 180 60 3,900 29,250 Based on your calculations,____________in physical capital per worker from 2016 to 2017 is associated with___________in labor productivity from 2016 to 2017. Suppose you're in charge of establishing economic policy for this small island country. Which of the…
- Refer to Problem 1 for data and assume now that the population growth rate increases to 5%. Calculate the new steady state values of the capital-labor ratio and output. Explain your answer graphically and compare the new values of the capital-labor ratio and output per worker to those obtained in Problem 1. Problem 1 The following graph describes Chile’s economy before the devastating earthquake of February 27, 2010. Assume Chile was its steadystate capital-labor ratio before the earthquake. a) On the same graph, identify the new capital-labor ratio immediately after this event. b) Describe how the capital-labor ratio will change in the aftermath of Chile’s earthquake.is it true or false that the growth rate of the GDP per worker for an economy where the capital to output ratio is constant represent the long run economic growth? whyEconomic growth and economic development are essentially one and the same. Comment on this assertion. Mention and briefly explain four sources of economic growth What causes short-run fluctuations in economic growth?
- In 2018, according to the International Monetary Fund, India had the world’s 7th-highest nominal GDP, the 142nd-highest nominal GDP per capita, and the 7th-highest real GDP growth rate. What does each of these indicators tell us about the Indian economy and how life in India compares to life in other countries? India has a huge economy that produces lots of goods and services (7th-highest nominal GDP), is still fairly poor (142nd-highest nominal GDP per capita), but has a rapidly increasing standard of living (7th-highest real GDP growth rate). India has a huge economy that produces lots of goods and services (142nd-highest nominal GDP per capita), is still fairly poor (7th-highest nominal GDP), but has a rapidly increasing standard of living (7th-highest real GDP growth rate). India has a huge economy that produces lots of goods and services (7th-highest nominal GDP), is still fairly poor (7th-highest real GDP growth rate), but has a rapidly increasing standard of…Productivity and growth policies Consider a hypothetical small island nation in which the only industry is cloud computing. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Year 2039 2040 Physical Capital (Servers) 200 480 Labor Force (Workers) Based on your calculations, productivity from 2039 to 2040. 100 120 Physical Capital per Worker (Servers) Labor Hours (Hours) 4,500 4,200 in physical capital per worker from 2039 to 2040 is asociated with Suppose you're in charge of establishing economic policy for this small island country. Output (TB of data storage) 40,500 75,600 Imposing restrictions on foreign ownership of domestic capital Subsidizing research and development…If in 2008 China’s real GDP is growing at 9 percent a year, its population is growing at 1 percent a year, and these growth rates continue, in what year will China’s real GDP per person be twice what it is in 2008?
