EBK MACROECONOMICS
7th Edition
ISBN: 9780134738970
Author: O'Brien
Publisher: PEARSON CUSTOM PUB.(CONSIGNMENT)
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Question
Chapter 11, Problem 11.2RDE
(a):
To determine
The differences in the labour productivity of China, India, and the United States.
(b):
To determine
Changes in relative productivity of labors in China.
(c):
To determine
Changes in relative productivity of labors in U.S and India.
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Question: Two countries, Ruritania and Francia, have the same population, the same stock of physical capital, and the same human capital per worker in the year 2015. But Ruritania has a GDP per capita of $55,000 (in 2015 PPP), while Francia’s GDP per capita is $50,000 (again in 2015 PPP).
What explains the 10 percent GDP per capita difference between the two countries?
Ruritania goes on a public spending spree and builds new factories and infrastructure, increasing its physical capital stock by 20 percent between 2015 and 2020. In the meantime, the stock of physical capital in Francia and population and human capital per worker in either country remain constant. GDP per capita in Francia remains at $50,000 (in 2015 PPP), while Ruritania’s increases to $75,000 (also in 2015 PPP). What explains the 50 percent GDP per capita difference between the two countries in 2020?…
Imagine two countries, i and j. You have the following information:
si = 2 sj s= saving rate
hi= hj h=human capital
2Ai = Aj A=technology
What can you infer about long-run income per worker differences between these countries? Explain formally.
Consider a small island country whose only industry is printing. The following table shows information about the small economy in two different years.
Complete the table by calculating physical capital per worker as well as labour productivity.
Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as
the quantity of goods per hour of labour.
Labour Hours
Output
Labour Productivity
Physical Capital
(Printing presses)
Labour Force Physical Capital per Worker
(Workers)
(Printing presses)
Year
(Hours)
(Books)
(Books per hour of labour)
2026
40
20
1,000
6,000
2027
120
40
1,400
12,600
Based on your calculations,
in physical capital per worker from 2026 to 2027 is associated with
in labour
productivity from 2026 to 20
an increase
Suppose you're in charge of a decrease conomic policy for this small island country.
Which of the following policies would lead to greater productivity in the printing…
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. 11.2.5PACh. 11 - Prob. 11.2.6PACh. 11 - Prob. 11.2.7PACh. 11 - Prob. 11.2.8PACh. 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. 11.4.8PACh. 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. 11.5.9PACh. 11 - Prob. 11.1RDECh. 11 - Prob. 11.2RDECh. 11 - Prob. 11.3RDE
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