Suppose that income grows at 2% per year and E=0.5. Using this information and the given data, fill in the missing values in the table. (Hint: Round your answers to the nearest cent, or, two decimal places.) 2036 Tongariro 20th percentile income Median income 2026 Ex $60,000 $60,000 S 2046 $ 2056 Consider now another hypothetical country, Nambung, that is initially (in the year 2026) identical to Tongariro in terms of median income level. However, Nambung differs from Tongariro in both distribution of income and income growth rate. Suppose that in the country of Nambung, income grows at 3% per year and E-0.4. Using this new information and the given data, repeat the exercise that you performed for Tongariro in previous task, and fill in the missing values in the table.

Suppose that income grows at 2% per year and E=0.5. Using this information and the given data, fill in the missing values in the table. (Hint: Round your answers to the nearest cent, or, two decimal places.) 2036 Tongariro 20th percentile income Median income 2026 Ex $60,000 $60,000 S 2046 $ 2056 Consider now another hypothetical country, Nambung, that is initially (in the year 2026) identical to Tongariro in terms of median income level. However, Nambung differs from Tongariro in both distribution of income and income growth rate. Suppose that in the country of Nambung, income grows at 3% per year and E-0.4. Using this new information and the given data, repeat the exercise that you performed for Tongariro in previous task, and fill in the missing values in the table.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter20: Poverty, Inequality, And Discrimination

Section: Chapter Questions

Problem 5DQ

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