MACROECON-EBK+MYECONLAB CDE+STUDENT PKT
7th Edition
ISBN: 9780135623114
Author: HUBBARD/KNAPP
Publisher: PEARSON C
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 10.1.13PA
Sub part (a):
To determine
Consequence of shifting of labor in GDP (
Sub part (b):
To determine
Consequence of shifting of labor in GDP (Gross Domestic Product) growth rate of the country.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
⦁ Briefly differentiate between nominal and real GDP. Why is real GDP more relevant measure of economic growth compared to nominal GDP? (1.5.0_w.o.r.d.s please)
Briefly discuss five reasons why a rise in real Gross Domestic Product within a country over time does not necessarily mean that living standards have improved.
Q2b: Consider the following data on the Pakistan economy:
Sub-parts to be solved
Nominal GDP GDP Deflator
Year (in billions of rupees) (base year 2012)
2018 21,501 111.4
1998 9,163 76.3
1) What was the growth rate of nominal GDP between 1998 and 2018? (Hint: The growth rate of a variable X over an N-year period is calculated as [(Xfinal/Xinitial)1/N – 1] x 100).
2) What was the growth rate of the GDP deflator between 1998 and 2018?
3) What was real GDP in 1998 measured in 2012 prices?
4) What was real GDP in 2018 measured in 2012 prices?
5) What was the growth rate of real GDP between 1998 and 2018?
6) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Chapter 10 Solutions
MACROECON-EBK+MYECONLAB CDE+STUDENT PKT
Ch. 10 - Prob. 10.1.1RQCh. 10 - Prob. 10.1.2RQCh. 10 - Prob. 10.1.3RQCh. 10 - Prob. 10.1.4RQCh. 10 - Prob. 10.1.5PACh. 10 - Prob. 10.1.6PACh. 10 - Prob. 10.1.7PACh. 10 - Prob. 10.1.8PACh. 10 - Prob. 10.1.9PACh. 10 - Prob. 10.1.10PA
Ch. 10 - Prob. 10.1.11PACh. 10 - Prob. 10.1.12PACh. 10 - Prob. 10.1.13PACh. 10 - Prob. 10.1.14PACh. 10 - Prob. 10.2.1RQCh. 10 - Prob. 10.2.2RQCh. 10 - Prob. 10.2.3RQCh. 10 - Prob. 10.2.5PACh. 10 - Prob. 10.2.6PACh. 10 - Prob. 10.2.7PACh. 10 - Prob. 10.2.8PACh. 10 - Prob. 10.2.9PACh. 10 - Prob. 10.2.10PACh. 10 - Prob. 10.2.11PACh. 10 - Prob. 10.2.12PACh. 10 - Prob. 10.2.13PACh. 10 - Prob. 10.2.14PACh. 10 - Prob. 10.2.15PACh. 10 - Prob. 10.2.17PACh. 10 - Prob. 10.3.2RQCh. 10 - Prob. 10.3.3RQCh. 10 - Prob. 10.3.4PACh. 10 - Prob. 10.3.5PACh. 10 - Prob. 10.3.6PACh. 10 - Prob. 10.3.7PACh. 10 - Prob. 10.3.8PACh. 10 - Prob. 10.3.9PACh. 10 - Prob. 10.1RDECh. 10 - Prob. 10.2RDECh. 10 - Prob. 10.3RDECh. 10 - Prob. 10.2CTE
Knowledge Booster
Similar questions
- Productivity often rises during economic expansions and falls during economic recessions. Can you think of reasons why? Briefly explain. (Hint: Remember that the level of productivity involves both levels of output and levels of labor input.)arrow_forwardThe magazine Women of China reported that Chinese women in big cities spent 63% of their income on consumer goods last year, up from a meagre 26% in 2007. Clothing accounted for the biggest chunk of that spending, at nearly 30%, followed by digital products such as cellphones and cameras (11%) and travel (10%). Chinese consumption as a whole grew faster than the overall economy in the first half of the year and is expected to reach 42% of GDP by 2020, up from the current 36%. Source: The Wall Street Journal, August 27, 2010 If the economy had been operating at a full employment equilibrium, (a) Describe the macroeconomic equilibrium after the rise in consumer spending. (b) Explain and draw a graph to illustrate how the economy can adjust in the long run to restore a full-employment equilibrium.arrow_forwardWhy is real GDP a better measure of economic growth than nominal GDP?arrow_forward
- As you learned in the most recent chapter, GDP is the broadest measure of economic health in the U.S. Therefore, the discussion forum for the week will ask you to discuss GDP in your own words. Specifically, Business leaders, Government officials, and investors are often fixated on GDP results and economic growth. Why? What does it matter? The same level of interest is given to productivity. What is it and why does it matter in the scheme of things? What does GDP fail to tell us?arrow_forwardThe following abstract appeared in gultnews.com on January 14th, 2019. "The UAE is forecast to achieve an annual average real GDP growth rate of 3.89% between 2019 and 2023, supported by an increase in investment Nows and private consumption A Would the nominal rate be less, the same or more than 3.8% Explain your answer discussing the difference between nominal GDP and8 GDP is used up by FOUR ultimate users Who are they? C Discuss whether the method that you use to calculate GDP influence the final resultarrow_forwardQ2: b) Consider the following data on the Pakistan economy: (Solve in White black paper) Nominal GDP GDP Deflator Year (in billions of rupees) (base year 2012) 2018 21,501 111.4 1998 9,163 76.3 iv. What was real GDP in 2018 measured in 2012 prices? v. What was the growth rate of real GDP between 1998 and 2018? vi. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.arrow_forward
- Why is Real GDP a better indicator of productive growth than Nominal GDP ?arrow_forwardDefine GDP growth in an economy.arrow_forwardSuppose that, in year 1, an economy produces 200 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 210 golf balls that sell for $3.50 each and 80 pizzas that sell for $9 each. Using year 1 as the base year, the growth rate of real GDP from year 1 to year 2 is ____%arrow_forward
- Consider an economy that produces only chocolate bars. In year 1, the quantity produced: is 6 bars and the price is $6. In year 2, the quality produced is 8 bars and the price is $10. In year 3, the quantity produced is 10 bars and the price is $12. Year 1 is the base year. (A) what is the nominal GDP for each of these three years? (B.) what is real GDP for each of these years? (C.) what is the percentage growth rate of real GDP from year 2 to year 3?arrow_forwardIt is observed that in a country in a given period of 20 years the average GDP growth rate has been 4%. However, it is observed that in this period the average GDP growth rate is 5% in the first 5 years and 3% in the last 5 years. How this difference in the average growth rates might be explained? In other words, why is the average GDP growth rate higher in the first 5 years than the average growth rate of the last 5 years?arrow_forwardSuppose GDP in 2022 was $25 trillion and the economy has a constant growth rate of 3%. What will GDP be in 2040? $45.1 trillion $33.6 trillion $43.8 trillion $42.6 trillionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning