Principles of Macroeconomics (12th Edition)
12th Edition
ISBN: 9780134061115
Author: CASE
Publisher: PEARSON
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Chapter 6, Problem 3.3P
To determine
The growth rate of real
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Economic growth around the world
The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it was the poorest economy in the table in the year 2010.
The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies.
Economy
Real Income per Person in 1960
Real Income per Person in 2010
Annual Growth Rate
(Dollars)
(Dollars)
(Percent)
Canada
12,946
35,810
2.06
United Kingdom
11,884
32,034
2.00
Korea
1,610
28,702
5.93
Hong Kong
4,518
44,070
4.66
Guatemala
1,985
3,859
1.34
Niger
945
570
-1.01
Indicate which economy…
The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Zambia was $1,412 in 1960, and it actually declined to $1,309 by 2010. Zambia's average annual growth rate during this period was -0.15%, and it was the poorest economy in the table in the year 2010.
The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies.
Economy
Real Income per Person in 1960 (Dollars)
Real Income per Person in 2010 (Dollars)
Annual Growth Rate (Percent)
Austria
9,773
35,031
2.59
Venezuela
7,307
9,762
0.58
Botswana
468
9,515
6.21
Malaysia
1,624
11,863
4.06
Honduras
1,932
3,146
0.98
Zambia
1,412
1,309
-0.15
Indicate which economy satisfies each of the following…
You are going to compare and contrast the GDP of the United States to that of another country of your choice for the last 3 years. Your report in narrative format should address the following questions:
Describe the current GDP growth rate of the two countries.
Which component of the GDP of the two countries changed the most for the last 3 years? Identify the possible causes of the changes.
Describe the biggest component of the GDP of the two countries.
What recommendations would you make in order to boost the GDP of the two countries?
Chapter 6 Solutions
Principles of Macroeconomics (12th Edition)
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- 20 Macroeconomic Information for Mexico: 2020 Q2 GDP (in 2020 Q2 pesos) 4.97 trillion pesos 2020 Q1 GDP (in 2020 Q1 pesos) 6.09 trillion pesos 2020 Q2 GDP (in 2015 pesos) 3.76 trillion pesos 2020 Q1 GDP (in 2015 pesos) 4.54 trillion pesos Calculate Mexico's real GDP growth rate between the first and second quarters of 2020. (Enter your answer in percent form, rounded to one decimal place, without the percent sign. For example, if your answer is 0.12345, enter 12.3.) 21 Macroeconomic Information for Mexico: 2020 Q2 GDP (in 2020 Q2 pesos) 4.97 trillion pesos 2020 Q1 GDP (in 2020 Q1 pesos) 6.09 trillion pesos 2020 Q2 GDP (in 2015 pesos) 3.76 trillion pesos 2020 Q1 GDP (in 2015 pesos) 4.54 trillion pesos Calculate Mexico's inflation, using the GDP deflator method, between the first and second quarters of 2020. (Enter your answer in percent form, rounded to one decimal place, without the percent sign. For example, if your…arrow_forwardEconomic growth around the world The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it was the poorest economy in the table in the year 2010.arrow_forwardThe following table shows real GDP per capita for Canada, Taiwan, and Chad between 1970 and 2000. All figures are in 1998 U.S. dollars. Compare the data for Canada and Taiwan between 1970 and 1980. During this period, _______ (options: Canada, Taiwan) had a higher level of real GDP per capita, while __________ (options: Taiwan, Canada) experienced a higher growth rate in real GDP per capita. Convergence theory predicts that poor countries will grow more quickly than rich countries. Which one of the following is a reason for this? A. Poor countries tend to have higher birth rates than rich countries. B, Copying existing technologies is less expensive than developing them independently. C. Rich countries devote a large fraction of their GDP to helping poor countries.arrow_forward
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