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- Refer back to the Work It Out about Comparing the Economies of Two Countries and examine the data for the two countries you chose. How are they similar? How are they different?Cross country comparisons of GDP per capita typically use purchasing power parity equivalent exchange rates, which are a measure of the long run equilibrium value of an exchange rate. In fact, we used PPP equivalent exchange rates in this module. Why could using market exchange rates, which sometimes change dramatically in a short period of time, be misleading?if a nation real gdp is growing by 3.5 percent per year , its real GDP will double in aproxiately 1. 41.1 years 2, 20.6 years 3, 10.3 years 4, 72 years
- 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?3. What is a modern sector?In an economic the National savings is 5000 million dollars. While the public saving is dollar 4500. Calculate private saving.
- Barcode technology spurred a lot of investment in retailing.How did it alter the retailing production function?What would a similar amount of investment have accomplised without the new technology?18 If real GDP is 250 in Year 1 and 300 in Year 2, what is the growth rate of real GDP Group of answer choices 5% 20% 50% 16%A country’s per-capita nominal GDP is growing at 5%, its price level is growingat 3% and its population is growing at 1%. How fast is its aggregate real GDPgrowing?(a) 2%(b) 3%(c) 4%(d) 5%
- Cañital stick for a country is $1600 billuon at the beginning of the year. Gross investment year is 20 billion and depreciation is 30 billion capital stock st the end og the year isDefine private saving, public saving and national saving. How are they related?1. Identify the three main economic indicators and what each indicator measures.