New Myeconlab With Pearson Etext -- Stanalone Access Card -- For Principles Of Macroeconomics
11th Edition
ISBN: 9780133049831
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 17, Problem 5P
To determine
The role of increasing research and development in a long-run growth in Indonesia.
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Refer to Problem 1 for data and assume now that the population growth rate increases to 5%. Calculate the new steady state values of the capital-labor ratio and output. Explain your answer graphically and compare the new values of the capital-labor ratio and output per worker to those obtained in Problem 1. Problem 1 The following graph describes Chile’s economy before the devastating earthquake of February 27, 2010. Assume Chile was its steadystate capital-labor ratio before the earthquake. a) On the same graph, identify the new capital-labor ratio immediately after this event. b) Describe how the capital-labor ratio will change in the aftermath of Chile’s earthquake.
Consider the following table displaying annual growth rates for nations X, Y, and Z, each of which entered 2020 with real per capita GDP equal to $20,000. Annual Growth Rate (%) Country 2020 2021 2022 2023 X 7 1 3 4 Y 4 5 7 9 Z 5 4 3 2 Part 2 a. The nation that most likely experienced a sizable earthquake. in late 2020 that destroyed a significant portion of its stock of capital goods, but was followed by speedy investments in rebuilding the nation's capital stock, is X . Calculate this nation's per capita real GDP at the end of 2023. $2000020000. (Enter your response rounded to the nearest dollar.)
Which of the following statements best describes the relationship between Economic Growth and Literacy Rates ?
A.
Literacy Rates decline as Economic Growth improves because Education is less useful in a developed economy.
B.
Increased Literacy initially stimulates Economic Growth by improving Labour Productivity but declines as the Opportunity Cost of Education increases with long-term Economic Growth.
C.
Increased Literacy stimulates Economic Growth by increasing Labour Productivity; People consume more Education as the Economy continues to grow.
D.
There is no correlation between Economic Growth and Literacy Rates.
Chapter 17 Solutions
New Myeconlab With Pearson Etext -- Stanalone Access Card -- For Principles Of Macroeconomics
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- Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run output per capita will be greater in B than in A. economic growth will be higher in A than in B. more information is needed to answer this question. output per capita will be greater in A than in B.arrow_forwardConsider two developed and developing countries, the population growth rate of developed countries is 2 percent per year and saving rate of 30 percent. The developing country has a population growth rate of 5 percent and saving rate of 10 percent. Suppose that initial technology of the developed country is 10 times higher than that of the developing country and that both countries have the same productivity growth and depreciation rate: g - 0.02 and 5=0.03. Assume that a - 1/ 3. In a steady state, how much is the developed country's GDP per capita larger than the developing country?arrow_forwardSuppose you are a highly regarded international economic advisor. You have been asked to assess the possibilities of growth in an African country. It is a country abundant in labour and some natural resources. The capital to labour ratio is low. It has a free market economy. You have found that this country does not have a very strong and healthy banking system; however, the political system is stable and the government does a good job protecting property rights. Assess this country’s prospects for growth. Recommend two things that would enhance the country’s growth Consider a simple economy that produces only three products: hot dogs, torches and golf balls. Use the information in the following table to calculate the inflation rate for 2018, as measured by the consumer price index. Product Quantity Base Year Price (2009) Price (2017) Price (2018) Hot dogs 10 $1.00 $1.50 $1.75 Torches 15 $5.00 $7.00 $6.75 Golf balls 8 $2.00 $3.00…arrow_forward
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- The table below shows the level of real GDP and real GDP per capita growth rates for a select set of countries for the year 2016. Determine the number of years it will take for the standard of living to double in each country. Instructions: Round your answers to one decimal place. Growth Rates and the Rule of 72 Country Real GDP (millions) Growth Rate of Real GDP per Capita (percent) Number of Years for Standard of Living to Double Canada $1,445,260 0.8% Madagascar 37,297 1.8 Philippines 843,692 5.1 Sweden 488,759 2.8 United States 12,341,233 0.2arrow_forwardList the factors that account for increases or decreases in productivity growth rates.arrow_forwardWhich of the following is most likely to contribute to economic growth as measured by GDP per capita? Question options: a) increased capital formation b) rapid population growth c) the imposition of tariffs and quotas on imported goods d) an increase in marginal tax ratesarrow_forward
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