What are the two critical factors that Lucas (1988)utilised to explain how technology may grow foreverto support the steady growth of GDP per capita?Provide a diagrammatic illustration of your answerwith explanation in words, based on a hypotheticalexample.

The Lucas Model of Growth states that in the long term, the economic growth is a consequence of…

Answered: What are the two critical factors that…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 3P

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What has been the average annual growth rate of U.S. real GDP per person over the 120 years from 1900 to 2020? In which decade, beginning with the 1960s, was the growth of potential GDP per person greatest and slowest? Over the 120 years from 1900 to 2020, the average annual growth rate of U.S. real GDP per person is enter your response here percent.
What has been the average annual growth rate of U.S. real GDP per person over the 120 years from 1900 to 2020? In which decade, beginning with the 1960s, was the growth of potential GDP per person greatest and slowest? Over the 120 years from 1900 to 2020, the average annual growth rate of U.S. real GDP per person is ____ percent
What has been the average annual growth rate of U.S. real GDP per person over the 120 years from 1900 to 2020? In which decade, beginning with the 1960s, was the growth of potential GDP per person greatest and slowest? Over the 120 years from 1900 to 2020, the average annual growth rate of U.S. real GDP per person is _____ %
In 1998, Brazil had a per capita GDP of about $4,500, compared to per capita GDP of about $28,000 in the US. (A) If per capita growth were to average 2% per year indefinitely in the US and 5% per year in Brazil, how many years would it take Brazil to catch up with the US? (B) Using the assumptions of the Cobb-Douglas production function, how fast would capital stock have to grow for per capita GDP to rise 5% per year? How does that compare with capital stock growth of 3% per year in the US (assume technology advances 1% per year in both countries)? (C) In mature industrialized societies, the capital/output ratio is approximately 3.0. If the average depreciation rate is 0.04, what would be the current saving and investment ratio in the US? What would it be in Brazil if per capita GDP rose 5% per year?
The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. During 1960-2010, which countries failed to reduce the gap betweentheir GDP per capita and the U.S. GDP per capita?
Suppose that , z the marginal product of efficiency units of labor, increases in the endogenous growth model. What effects does this have on the rates of growth and the levels of human capital, consumption, and output? Explain your results.
True or false? If false, explain why.a. Technological advance, which to date has played a relatively small role in U.S. economic growth, is destined to play a more important role in the future.b. Many public capital goods are complementary to private capital goods.c. Immigration has slowed economic growth in the United States.
While increasing outplut levels have been a benefit of economic growth, what have been some of the challenges associated with the phenomenon of economic growth? Here consider the broad social and environmental implications that stem from economic growth. In your answer draw on relevant evidence and examples.
The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. During 1960-2010, which countries were able to reduce the gap betweentheir GDP per capita and the U.S. GDP per capita?
Country A’s real GDP per capita is $4,000 today, but it is constantly growing at 5%per year. Country B’s current real GDP per capita is $16,000, but it is constantly growing at 2% per year. Willthe standard-of-living in Country A ever catch-up with or overtake Country B? If so, when would it happen?Provide your analysis
In year 0, Country A has a real GDP per capita of $1,600. If Country A grows at a constant rate of 6% per year and Country A's population remains constant, what is Country A's real GDP per capita by year 20? (Round to the nearest dollar.) Provide your answer below: $$$2042 Answer neatly with proper explanation of it

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What are the two critical factors that Lucas (1988) utilised to explain how technology may grow forever to support the steady growth of GDP per capita? Provide a diagrammatic illustration of your answer with explanation in words, based on a hypothetical example.