MACROECONOMICS (LL)
21st Edition
ISBN: 9781260186949
Author: McConnell
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 22, Problem 3RQ
To determine
The effect of higher population growth over living standards.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What are spillover effects and how do they affect growth? (LO27-4)
Suppose that 10 workers were required in 2010 to produce 40,000 bushels of wheat on a 1,000-acre farm. a. What is the average output per acre? Per worker? b. If in 2020 only 8 workers produce 44,000 bushels of wheat on that same 1,000-acre farm, what will be the average output per acre? Per worker? c. By what percentage does productivity (output per worker) increase over those 10 years? Over those 10 years, what is the average annual percentage increase in productivity?
Using the demand and supply of loanable funds, demonstrate the effect of the following on the interest rate. As a result, what would you expect to be the impact of the change on growth? (LO9-3)
a-Government increases spending.
b-Businesses become more productive.
c-The people as a whole save more.
Knowledge Booster
Similar questions
- 16)A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. Thus, if Mexico’s real GDP per person is growing at 7 percent per year, it will take about 10 years (= 70/7) to double. Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 4 percent per year, about how long will it take Mexico’s real GDP per person to reach the level that the United States was at in 2005? (Hint: How many times would Mexico’s 2005 real GDP per person have to double to reach the United States’ 2005 real GDP per person?) Instructions: Enter your answer as a whole number.arrow_forwardA mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. Thus, if Mexico's real GDP per person is growing at 7 percent per year, it will take about 10 years ( =70/7) to double. Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $ 11,000 per person, while it was about $ 44,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 5 percent per year, about how long will it take Mexico's real GDP per person to reach the level that the United States was at in 2005? (Hint: How many times would Mexico's 2005 real GDP per person have to double to reach the United States' 2005 real GDP per person?)arrow_forwardWhy dues productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?arrow_forward
- Country A and country B both have the production function Y = F(K, L) = K1/3L2/3 Does this production function have constant returns to scale? Explain. Find Solow’s production function, y = f (k)? Assume that neither country experiences population growth or technological progress and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 30 percent of output each year. Find the steady-state level of capital per worker for each country, then find the steady-state levels of income per worker and consumption per worker. Suppose that both countries start off with a capital stock per worker of 2. What are the levels of income per worker and consumption per worker? Remembering that the change in the capital stock is investment less depreciation, use a calculator (or, better yet, a computer spreadsheet) to show how the capital stock per worker will evolve over time in both countries. For…arrow_forward1. California's GDP per capita is $60,000, while Nevada's GDP per capita is$40,000. If both grow at 2 percent per year, how long will it take for the twostates to have the same GDP per capita?A) 25 yearsB) 35 yearsC) 50 yearsD) They will never have the same GDP per capitaarrow_forward7. Calculate the compound annual growth rates of goods exports and GDP of developed, developing countries, Canada and BRIC for the decade 2006-2016 (just use end years data to calculate the growth. Present your result either in a table or graphs. What do these growth rates tell about globalization vs. national economic growth rates for these groups? 8. How have US shares of Canada's exports, and imports of goods and services, and inward and outward FDI stock changed in the last two decades? Show with two graphs, one for trade and the other for FDI) Most of these data can be downloaded from World Bank, UNCTAD and CANSIM databases.arrow_forward
- A mathematical approximation called the rule of 70 tells us how long it will take for something to double in size if it grows at a constant rate. The doubling time is approximately equal to the number 70 divided by the percentage rate of growth. Thus, if Panama’s real GDP per person is growing at 7 percent per year, it will take about 10 years (= 70/7) to double. Apply the rule of 70 to solve the following problem: Suppose that real GDP per person in Panama in 2017 was about $12,000 per person, while it was about $48,000 per person in the United States. If real GDP per person in Panama grows at the rate of 5 percent per year, about how long will it take Panama’s real GDP per person to reach the level that the United States was at in 2017? (Hint: How many times would Panama’s 2017 real GDP per person have to double to reach the United States’ 2017 real GDP per person?) __________ yearsarrow_forwardSuppose that India is currently growing at a rate of 14% per year and is producing real GDP per capita equal to $7,000, whereas the United States is currently growing at a rate of 5% per year and is producing real GDP per capita equal to $28,000.a) How long will it take India to double its real GDP per capita?b) How long will it take the United States to double its real GDP per capita?c) How much will India's real GDP per capita be in 20 years?d) How much will the USA's real GDP per capita be in 14 years?arrow_forward(Words apart) Per capita income most recently was about 160 times greater in the US that in Democratic Republic of the Congo. Suppose per capita income grows an average of 3 percent per year in the richer country and 6 percent per year in the poorer country. Assuming such growth rates continue indefinitely into the future, how many years would it take before per capita income in the Congo exceeds that of the US? (to simplify the math, suppose at the outset per capita income is $160000 in the richer country and $1000 in the poorer country.)arrow_forward
- Question Approximately how long will it take Ethiopia to double its real GDF per person of S100 if its growth rate of real GDP per person is 0.9 63 years 77.7 years 70 years 109 years 100 years If Country A's real GDP grows at a rate of 14 percent per year, how many years will it take for Country A's real GDP to double? 10 7 5 30 14 Labor productivity is defined as total real GDP. real GDP per person. total output multiplied by total hours of labor. real GDP per hour of labor. hours of work per person. An increase in labor productivity increases the standard of living. decreases the standard of living. might be the result of an increase in the quantity of labor. generally occurs when physical capital decreases because firms must then hire more workers. cannot occur without a corresponding increase in employment. Last year, in a nation far to the South, real GDP was $90 million 900.000 workers were employed. This year real GDP is $100 million. 950.000 workers are…arrow_forwardComputing growth rates (II): Suppose k, l, and m grow at constant rates givenby g k, gl , and gm. What is the growth rate of y in each of the following cases?(a) y = k 1/3(b) y = k 1/3l 2/3(c) y = mk 1/3l 2/3(d) y = mk 1/4l 3/4(e) y = mk 3/4l 1/4(f ) y = 1klm2 1/2(g) y = 1kl2 1/4 11/m2 3/4arrow_forward2.a) Provide a definition of ‘technological capability and ‘social capability and describe the differences between them. Why can we say that innovation has a ‘systemic’ nature? 2.b) Financial development, social capital, favorable business regulation, trade openness are different aspects of ‘social capability’ influencing innovation processes and, therefore, economic development. Make a ranking of these factors according to their observed degree of importance for economic development. Explain why ‘inclusiveness’ and ‘equality in opportunities’ can strengthen the innovation capability of an economy. 2.c) Figure 1 below shows the cross-country correlation between the development of the education system and the level of economic development. Analyze Figure 1 by arguing about the importance of the education system for economic development in low, emerging, and developed countriesarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax