EBK MACROECONOMICS
6th Edition
ISBN: 8220103116688
Author: O'Brien
Publisher: PEARSON
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Question
Chapter 11, Problem 11.2.9PA
To determine
The return of capital when the economy’s slopes of production function curve is upward.
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Students have asked these similar questions
Briefly explain the contribution of Robert Solow to economic growth theory.What was the novelty he introduced model?
3. The following information has been discovered about the economy of Errachidia. The
country's productivity curve is
Capital
Real GDP
10
3.8
20
5.7
30
7.13
40
8.31
50
9.35
60
10.29
70
11.14
80
11.94
1) Draw the production function for Ertachidia
2) Explain the reason for the shape of the graph
Ac
Acc
Describe and illustrate in a graph what happened in the economy in the table below if in year 1, capital
per hour of labor was 30 and in year 2 it was 40.
Capital per hour of
labor
10
20
30
40
50
60
70
Real GDP per hour of labor
In Year 1
7
13
18
22
25
27
28
In Year 2
9
17
24
30
35
39
42
Chapter 11 Solutions
EBK MACROECONOMICS
Ch. 11 - Prob. 11.1.1RQCh. 11 - Prob. 11.1.2RQCh. 11 - Prob. 11.1.3PACh. 11 - Prob. 11.1.4PACh. 11 - Prob. 11.1.5PACh. 11 - Prob. 11.1.6PACh. 11 - Prob. 11.1.7PACh. 11 - Prob. 11.1.8PACh. 11 - Prob. 11.2.1RQCh. 11 - Prob. 11.2.2RQ
Ch. 11 - Prob. 11.2.3RQCh. 11 - Prob. 11.2.4RQCh. 11 - Prob. 11.2.5RQCh. 11 - Prob. 11.2.6PACh. 11 - Prob. 11.2.7PACh. 11 - Prob. 11.2.8PACh. 11 - Prob. 11.2.9PACh. 11 - Prob. 11.2.10PACh. 11 - Prob. 11.2.11PACh. 11 - Prob. 11.2.12PACh. 11 - Prob. 11.3.1RQCh. 11 - Prob. 11.3.2RQCh. 11 - Prob. 11.3.3PACh. 11 - Prob. 11.3.4PACh. 11 - Prob. 11.3.5PACh. 11 - Prob. 11.3.6PACh. 11 - Prob. 11.4.1RQCh. 11 - Prob. 11.4.2RQCh. 11 - Prob. 11.4.3RQCh. 11 - Prob. 11.4.4PACh. 11 - Prob. 11.4.5PACh. 11 - Prob. 11.4.6PACh. 11 - Prob. 11.4.7PACh. 11 - Prob. 11.4.8PACh. 11 - Prob. 11.4.9PACh. 11 - Prob. 11.4.10PACh. 11 - Prob. 11.4.11PACh. 11 - Prob. 11.4.12PACh. 11 - Prob. 11.5.1RQCh. 11 - Prob. 11.5.2RQCh. 11 - Prob. 11.5.3PACh. 11 - Prob. 11.5.4PACh. 11 - Prob. 11.5.5PACh. 11 - Prob. 11.5.6PACh. 11 - Prob. 11.5.7PACh. 11 - Prob. 11.5.8PACh. 11 - Prob. 11.1RDECh. 11 - Prob. 11.2RDECh. 11 - Prob. 11.3RDE
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Similar questions
- Briefly provide the relationship between economic growth (GDP growth), high/low unemployment, high/low wages, and the way they impact one another.arrow_forward2.4 Economic growth in the long run. Another theory explaining economic growth is the Endogenous Growth Theory. Suppose a country having the following parameters: Production function: Y = AK Saving rate: 5 Depreciation rate of capital: & What is the condition for economic growth. according to this theory?arrow_forwardBased on article "Technology and economic growth: From Robert Solow to Paul Romer" by Rui Zhao, Solow mentioned technology (At) and capital per unit of effective labor (Kt) have a significant influence on a country's ability to “catch-up” or “converge” to a steady-state level (K*). Why did Solow model assume At as a black box in economics? Explain in brief.arrow_forward
- Consider the per-worker production function graph. If there is an increase in capital per hour worked, holding technology constant, then A. there is a movement from A to B. B. there is a movement from A to C. C. there is a movement from B to D. D. there is a movement from D to C. If there is an increase in technology, holding constant the quantity of capital per hour worked, then A. there is a movement from C to D. B. there is a movement from A to B. C. there is a movement from D to B. D. there is a movement from A to C. C Real GDP per hour worked (Y/L) 10- Y/L2 Y/L₁ Per-Worker Production Function C 3 B Per Worker Production Function 1 K/L₁ K/L₂ Capital per hour worked (K/L) 10arrow_forwardSuppose in the economy in question 4) there is an increase in the saving rate from 6% up to 10%.Briefly explain how this will affect the following variables in the steady-state.capital per workera)b)investment per workerc)growth rate of output per workerd)growth rate of outputarrow_forwardTyped plaza Asaparrow_forward
- The great 18th century economist Adam Smith wrote “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things.” Explain how each of the three conditions Smith describes might promote long run economic growth.arrow_forwardDiscuss the following statement: “Those who argue that technological progress does not reduce employment should take a look at agriculture. At the start of the last century, there were more than 11 million farm workers. Today, there are fewer than 1 million. If all sectors start having the productivity growth that took place in agriculture during the 20th century, no one will be employed a century from now.”arrow_forwardIn the famous book called “Essay on the Principle of Population” (published in 1798) the Englisheconomist Thomas Malthus pointed out that due to fixed quantity of land in the world, aspopulation of the world grow the amount of land per worker will decline and future productivitywill fall. Having learned about the factors that contribute to economic growth, why do you thinkhis prediction about the future of the word turned out to be incorrect? Provide a brief explanation.arrow_forward
- 1. (This is problem 3, page 238 of the textbook.) For a particular economy, the following capital input K and labor input N were reported in four different years: Year 1 234 4 K 200 250 250 300 N 1000 1000 1250 1200 The production function in this economy is Y=K0.3 Nº.7, where Y is total output. a. Find total output, the capital-labor ratio, and output per worker in each year. Compare year 1 with year 3 and year 2 with year 4. Can this production function be written in per-worker form? If so, write algebraically the per- worker form of the production function. b. Repeat Part (a) but assume now that the production function is Y = Kº.3 Nº.8arrow_forwardBased on article "Technology and economic growth: From Robert Solow to Paul Romer" by Rui Zhao, Romer has successfully opened the black box and explained how technology can be produced by an economy without having to rely on external (exogenous) technology. Using the central equations of the Romer’s model, technology (At) can grow to At + 1 due to efforts in R&D and technology spillover. Explain the role of three key sectors in the economy to drive technological-based economic growth.arrow_forwardProductivity 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_forward
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