MACROECONOMICS W/CONNECT:LOOSE>CUSTOM<
21st Edition
ISBN: 9781260195835
Author: McConnell
Publisher: MCG CUSTOM
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Chapter 22, Problem 2DQ
To determine
The equilibrium dollar price of Yen.
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Assume that a very tiny and very poor DVC has income per capita of $300 and total national income of $3 million. How large is its population? If its population grows by 2 percent in some year while its total income grows by 3 percent, what will be its new income per capita rounded to full dollars? If the population had not grown during the year, what would have been its income per capita?
In 38 low-income and emerging economies with GDP per capita below $25,000 tracked by
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fluctuations on
average for all those countries.
O 20 percent of GDP
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O 30 percent of GDP
O 10 percent of GDP
"Consider the simple production model studied in class, but with different exponents. Suppose that the
production function is Cobb-Douglas. The exponent on capital is 0.1 and the exponent on labor is 0.9. The
data for this economy is A=10, KO=300 and the initial population is LO-30. We will assume that everyone in
this country works so that population equals employment and per-person GDP equals per-worker GDP.
Now suppose that the country receives foreign aid that is used to invest in infrastructure and electric
vehicles. As a result, over the next few years, the economyos capital stock doubles to K1=600. Fortunately,
no one is killed during the hurricane. In the Capital market the Demand will and the Supply will
As a result, the rental rate will
Shift to the Right; Remain unaffected; Increase
Shift to the Left; Remain unaffected; Fall
Shift to the Left; Shift to the Right; Fall
Remain unaffected; Shift to the Right; Fall
Chapter 22 Solutions
MACROECONOMICS W/CONNECT:LOOSE>CUSTOM<
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