EBK PRINCIPLES OF MACROECONOMICS
12th Edition
ISBN: 9780134079592
Author: Oster
Publisher: YUZU
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Chapter 15, Problem 3.1P
To determine
Increase in output without a proportional increase in workers.
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Chapter 15 Solutions
EBK PRINCIPLES OF MACROECONOMICS
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- For 2008, GDP in the United States was estimated at $14.265 Trillion Dollars. If the estimated population was 303 million, what was the GDP per capita that year? What share of GDP would accrue to a family of four?arrow_forwardJohn owns a small farm in central lowa. John has been using the same resources to grow the same amount and quality of potatoes each year on the farm for 25 years. Is John helping to drive growth in real GDP? Because John is not adding additional value each year by doing something better than he did the year before, he is contributing to GDP; but he is not driving growth in real GDP. John is using land as a factor of production and making something with it; thus, he is driving growth in real GDP. John is adding value by growing potatoes, so each year he contributes to driving growth in real GDP. Because John is not adding additional value each year by doing something better than he did the year before, he both not contributing to GDP nor driving growth in real GDP.arrow_forwardSuppose that Indonesia's national production function is Y = K 05L 05, where K is the amount of land and Lis the amount of labor. The economy starts when the amount of land owned is 100 units and the number of workers is 100 units. Calculate the following indicators. a. How much output is produced? b. What are the labor wages and land rent? c. What is the share of the output received by labor? d. If a natural disaster occurs that causes the population to be reduced by half, what is the new level of national output? e. What are the new rates of labor wages and land rent? f. What share of output does the labor receive now?arrow_forward
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