In order to improve living standards for future generations, the economy must sacrifice consumer goods today reduce its investment goods increase government spending reduce growth in the population
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In order to improve living standards for future generations, the economy must
- sacrifice consumer goods today
- reduce its investment goods
- increase government spending
- reduce growth in the population
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- Would you usually expect GDP as measured by what is demanded to be greater than GDP measured by what is supplied, or the reverse?An increase in the amount of human capital in the economy will ["decrease", "remain unchanged", "increase"] the productivity of labor. As a result, average real income in the economy will["decrease", "increase", "remain unchanged"] . PreviousNextExercise 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…
- According to the following information answer the questions. Macroeconomic Indicators: Country A Household final consumption: $40.3 billions Government final consumption: $15.7 billions Budget balance: $-3.8 billions Total Investment: $14.4 billions Exports of goods and services: $18.6 billions Imports of goods and services: $16.5 billions Country A's net capital inflow = $____billions Your AnswerWhich one is correct? A/B/C/ Last year, North End Coffee Roasters Bangladesh opened a number of branches at different location of Dhaka city. This event- A. Increases current year’s GDP B. Increases current investment expenditure C. Current GDP remains unchanged.An increase in the initial stock of knowledge: Suppose we have two economies—let’s call them Earth and Mars—that are identical, except that one begins with astock of ideas that is twice as large as the other: A Earth 0 = 2 × A Mars0 Te two economies are so far apart that they don’t share ideas, and each evolves as a sepa-rate Romer economy. On a single graph (with a ratio scale), plot the behavior of per capita GDP on Earth and Mars over time. What is the efect of starting outwith more knowledge?
- An economy produces final goods and serviceswith a market value of $5,000 billion in a givenyear, but only $4,500 billion worth of goods andservices is sold to domestic or foreign buyers. Isthis nation’s GDP $5,000 billion or $4,500 billion?Explain your answer.If all quantities produced rise by 5 percent and allprices fall by 5 percent, which of the following bestdescribes what occurs?a. Real GDP rises by 5 percent, while nominalGDP falls by 5 percent.b. Real GDP rises by 5 percent, while nominalGDP is unchanged.c. Real GDP is unchanged, while nominal GDP risesby 5 percent.d. Real GDP is unchanged, while nominal GDP fallsby 5 percent.COMPONENT R millions Consumption expenditure (C) 9 000 Investment (I) 6 500 Government spending (G) 7 000 Exports (X) 1 800 Imports (Z) 2 400 Depreciation 700 Foreign payment to the rest of theworld 300 Foreign payment from the rest of the world 250 Q1. Determine the value of the country’s NNI (Net National Income) atmarket price. Q2. If it is predicted that the GDP will increase to 22 000 in 2020,calculate the growth rate between 2019 and 2020.
- Please no written by hand The standard of living (per capita Real GDP) in the U.S.: a. increased in every decade from 1930 to 2010 except the 1930s and 1970s b. almost doubled between 1930 and 2010 c. Both of the above d. Neither of the above The standard of living (per capita Real GDP) in the U.S.: a. increased in every decade from 1930 to 2010 except the 1930s and 1970s b. almost doubled between 1930 and 2010 c. Both of the above d. Neither of the abovediscuss why do national income and personal income differ, what happened during economics growthGDP measures: the value of production total expenditures income of factors production all the above 2. GDP does NOT include: re-sale of houses durable consumption spending consumption spending for services payment of WVU faculty salaries 3. Suppose that Inventories fall by $2 billion, Consumption increases by $8 billion, Welfare Payments decline by $3 billion, Export increases by $2 billion and Import also increases by $2 billion. Ceteris paribus! By how much should measured-GDP change? $6 billion $8 billion $11 billion $9 billion