Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 22, Problem 4DQ
To determine
The demographic transition.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What are spillover effects and how do they affect growth? (LO27-4)
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.
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?
Knowledge Booster
Similar questions
- Suppose that the current (first) generation consists of 1 million people, half of whom are women. Assume the total fertility rate is 1.2 and the only way people die is of old age. Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers to 2 decimal places. a. How big will the fourth generation (the great-grandchildren) be? ___ people b. How much smaller (in percentage terms) is each generation than the previous generation? ___ percent c. How much smaller (in percentage terms) is the fourth generation than the first generation? ___ percentarrow_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_forward3) Suppose that Alpha and Omega have identically sized working-age populations but that total annual hours of work are much greater in Alpha than in Omega. This could happen because more of Alpha’s labor force is unemployed, or Omega workers place a lower value on leisure than those in Alpha. Omega’s labor force is underemployed, or Omega workers place a higher value on leisure than those in Alpha. Alpha’s labor force is underemployed, or Omega workers place a higher value on leisure than those in Alpha. more of Omega’s labor force is unemployed, or Omega workers place a lower value on leisure than those in Alpha.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_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_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_forward
- Suppose an economy’s production function is Y = AKαL1−α. If the annual rate of economic growth is 3.5 per cent and labour and capital are both growing by 2 per cent annually, what contribution to growth is made by total factor productivity? You can assume that labour receives 75 per cent of the total income generated in this economy.arrow_forwardSuppose that in Country 1 the growth rates of multifactor productivity (a), capital (k), and labor (h) are 2.5, 3, and 1 percent per year, respectively, and that capital’s share of output (b) equals 0.25. Initially output per hour equals 40 in Country 1 and 10 in Country 2. (a) Calculate the labor productivity growth rate in Country 1. (b) Calculate output per hour in Country 1 at the end of ten, twenty, and thirty years. (c) Suppose that the labor productivity grows four times as fast in Country 2 as it does in Country 1 for the first ten years, three times as fast for the second ten years, and twice as fast for the third ten years. Calculate output per hour in Country 2 at the end of ten, twenty, and thirty years. (d) Calculate Country 2’s output per hour as a percentage of Country 1’s output per hour at the end of ten, twenty, and thirty years. Are these calculations consistent with the predictions of the Solow growth model?arrow_forward16)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_forward
- What do we mean by “economic activity”?Economic Activity we mean the area of our social interactions in which people provide for their material needs and for those of their fellow human beings. It involves the production, the distribution, and the consumption of goods and services. #164. What does the Bible say about poverty and riches?Anyone who follows Jesus must never forget that first and foremost we are supposed to be ‘rich toward God’ (Lk.12:21). To become rich in material things is not a particularly Christian goal in life. And to be materially rich is not a sure sign of God’s special grace. Jesus teaches us to pray: ‘Give us this day our daily bread’ (Mt.6:11). With these words we ask the Father for all that we need for our earthly life. We do not strive for luxurious possessions but for the goods required for a happy life in moderate prosperity, the support of a family, works and charity, and participation in culture and education, as well as further development. #175. Is…arrow_forwardProvide intuitive economic to explain why equal percentage increase in savings rates and population growth rate appears to nullify each other in the equation y*= 1000( √s/n) ( where per capita income is unchanged)arrow_forwardGiven: Assume South Korea grows at 4% and United States grows at 1 % assume they both start from the same fictional income level, $10,000. (1) What will the incomes of the US and South Korea be in 20 years? (2) By how many multiples will each country's income grow in 20 years?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
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