EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 26, Problem 6DQ
To determine
Growth accounting; extent of increase in U.S. real GDP resulted from more labor inputs and greater labor productivity; and arranging the factors of economic growth in order of their quantitative importance.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
6. LO 2 Suppose that z, the marginal product of efficiency units of labour, increases in the
endogenous growth model. What effects does this have on the rates of growth and the
levels of human capital, consumption, and output? Explain your results.
Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2
million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was
the growth rate of real GDP per person during the year?
O 12%
O 10%
O 4%
2%
- Suppose that work hours in New Zombie
are 200 in year 1, and productivity is $8
per hour worked. What is New Zombie's
real GDP? If work hours increase to 210
in year 2 and productivity rises to $10
per hour, what is New Zombie's rate of
economic growth? LO8.4
Chapter 26 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Knowledge Booster
Similar questions
- The nominal U.S. GDP per capita was about $23,954 in 1990 and $48,375 in 2010. The GDP deflator of 2010 against 1990 was about 1.5159. What is the average annual growth rate of real GDP per capita during 1990-2010 approximately? O 1.44% O 2.33% O 2.02% O 1.98%arrow_forwardQUESTION 11 Using the Rule of 70, a country will roughly double its GDP in thirty-five years if its annual growth rate is However, if its annual growth rate is 5%, its GDP will roughly double in O 2 percent; 14 years O 7.5 percent; 10 years O 3.5 percent; 5 years O 2.5 percent; 25 yearsarrow_forwardOn the following scatter plots, the 1960 real per capita GDP is on the x-axis and the y-axis represents the average economic growth rate between 1960 and 2017. Which one shows the strongest evidence in favour of convergence? O 2.5 1960-2017 growth (percent) 2.0 1.5 1.0 3 2 5 5 Convergence 10 1960 GDP (constant dollars per person) Convergence 15 10 15 1960 GDP (constant dollars per person) 20 20arrow_forward
- Question I - Solow Model without Population or Technology Growth Consider the Solow growth model with no population growth and no technology growth, i.e., n = x = 0. Output is created by a Cobb-Douglas production function combining Labor, Lt, and capital, Kt, such that output Yt is given by Y₁ = A+ KL 1-α = = Recall that, without population growth, Lt Lo and assume that Lo 1. Furthermore, recall that, without technology growth, At Ao and assume that A0 = 1. The law of motion for capital per worker is = kt+1 = (1 − 6) kt + sAtko. (1) Assume that the savings rate is s = 0.2, the depreciation rate is 8 = 0.1, and that the capital share is a = 0.3. 1. Use equation (1) to solve for the steady state level of capital, kss, (hint, replace kss in that equation on both sides) kss = What is the steady state level of capital? (Replace the numbers in the expression) = 2. Suppose that this economy starts with ko 1. Does capital grow or fall over time? What is the maximum level of capital per capita…arrow_forwardConsider the economies of Tralfamadore and Sporon, both of which produce agricultural products using only land and labour. The following tables show the supply of land, population size, and real GDP for these two economies from 2020 to 2023. Complete the last column of the following two tables by calculating real GDP per capita for the two economies. Tralfamadore Land Real GDP (Dollars) Real GDP per Capita (Dollars) Year (Hectares) Population 2020 20,000 500 4,500 2021 20,000 1,000 10,000 2022 20,000 1,500 16,500 2023 20,000 2,000 24,000 Sporon Land Real GDP Real GDP per Capita (Dollars) Year (Hectares) Population (Dollars) 2020 20,000 1,000 15,000 2021 20,000 2,000 28,000 2022 20,000 3,000 36,000 2023 20,000 4,000 40,000 Rapid population growth tends to threaten economic growth in economies with higher or lower land-labour ratios.arrow_forwardQuestion 2 Suppose that the production function is Y = 10K5L5, the population growth rate is 15 percent and the depreciation rate is 5 percent. What is the steady state level of k if the economy saves 30 percent? O 400 O 225 100 O 1000 Question 3 Suppose that the production function is Y 10K SL5, the population growth rate is 15 percent and the depreciation rate is 5 percent. What is the steady state level of y if the economy saves 30 percent? 250 350 150 O 450arrow_forward
- 4. What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor? Illustrate these factors in terms of the production possibilities curve. LO8.3arrow_forwardA country has a Gross Domestic Product of $100 in 2015. In 2020, their Gross Domestic Product is $200. Using the growth rate formula, what is their average yearly growth rate? O 14.9% O 12.8% O 18.9% O 12.8%arrow_forwardWhen economists speak of "long-run economic growth, they mean increasing the Select one: O a. real GDP of a country. O O O b. geographic size of a country. c. per capita real GDP of a country. d. population of a country. According to the instructors calculations, the average person in the United States spends Select one: O O O O a. approximately 5 and ½ hours b. about 3 and ½ hours c about 8 hours d. 45 minutes On a graph with savings on the x-axis and real interest rates on the y-axis, the supply of savings curve following the law of supply would: Select one: O O O O a. be horizontal a day in activities needed to continue living (what he described as not dying b. have a negative slope c. be vertical d. have a positive slopearrow_forward
- Question 1 If a country's GDP is growing at 5% a year, how many years does it take for the country's GDP to double? 13.8 O 14.2 O 15.2 O 18.2arrow_forwardWhich of the following options listed below do economists count as determinants of economic growth? Select all that apply. Hint: read through all the options provided. O Techriological improvement. Growth in birth rates O Growth in the number of people "Not in the labour force". Growth in human capital. Growth in the interest rate. Growth in the labour force participation rate. O Growth in government spending. Growth in resource efficiency. Growth in physical capital. O Growth in the number of immigrants entering the country. Minimizing taxes. O Growth in imports.arrow_forwardIf the rate of total factor productivity growth is 3%, the growth rate of the capital stock is 4%, the growth rate of the labor force is 2%, and the share of capital is .5, then the growth rate of output per worker is 4%, while the growth rate of output is O 2%. the growth rate of output is 4%, while the growth rate of output per worker is O 2%. None of the above the growth rate of output is 6%, while the growth rate of output per worker is O 4%. the growth rate of output per worker is 6%, while the growth rate of output is 4%.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
