Macroeconomics (6th Edition)
6th Edition
ISBN: 9780134106229
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 8, Problem 8.2.6PA
To determine
Real
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A typical U.S. worker today works fewer than 40 hours per week, while in 1890, he or she worked 60 hours per week. Does this difference in the length of work weeks matter in comparing the economic well-being of U.S. workers today with that of 1890? Or can we use the difference between real GDP per capita today and in 1890 to measure differ- ences in economic well-being while ignoring differences in the number of hours worked per week? Briefly explain.
The following table gives nominal GDP, real GDP, and the population for two years.
Find per capita real GDP in each year and fill in the table. (Round your answers to two decimal places.)
Year
Nominal GDP
Real GDP
Per Capita
Real GDP
Population
2010
7,800
7091
100
2011
8,190
7000
106
The growth rate of real GDP between 2010 and 2011 was %, and the growth rate of per capita real GDP was%. (Round your answers to two decimal places.)
Three Irish sisters are thinking about emigrating in 1870. The options are going to the United States or Argentina, or staying in Ireland. They cannot agree where to go and split up. One stays in Ireland, one emigrates to the United States and one to Argentina. The following table provides information on real GDP per capita in 1870, 1913, and 1929 in Ireland, the United States and Argentina expressed in U.S. dollars of 1990, which we will use to analyze how each did.
Real GDP per capita
1870
1913
1929
Ireland
1,775
2,736
2,824
United States
2,445
5,301
6,899
Argentina
1,311
3,797
4,367
(d) Suppose by 1913 each of the sisters has a daughter who is thinking about emigrating. The daughters forecast income in 1929 using the average growth rate observed between 1870 and 1913. Find the forecasted 1929 real GDP per capita level for each country.
Chapter 8 Solutions
Macroeconomics (6th Edition)
Ch. 8 - Prob. 8.1.1RQCh. 8 - Prob. 8.1.2RQCh. 8 - Prob. 8.1.3RQCh. 8 - Prob. 8.1.4RQCh. 8 - Prob. 8.1.5RQCh. 8 - Prob. 8.1.6PACh. 8 - Prob. 8.1.7PACh. 8 - Prob. 8.1.8PACh. 8 - Prob. 8.1.9PACh. 8 - Prob. 8.1.10PA
Ch. 8 - Prob. 8.1.11PACh. 8 - Prob. 8.1.12PACh. 8 - Prob. 8.1.13PACh. 8 - Prob. 8.1.14PACh. 8 - Prob. 8.2.1RQCh. 8 - Prob. 8.2.2RQCh. 8 - Prob. 8.2.3RQCh. 8 - Prob. 8.2.4PACh. 8 - Prob. 8.2.5PACh. 8 - Prob. 8.2.6PACh. 8 - Prob. 8.2.7PACh. 8 - Prob. 8.2.8PACh. 8 - Prob. 8.2.9PACh. 8 - Prob. 8.2.10PACh. 8 - Prob. 8.3.1RQCh. 8 - Prob. 8.3.2RQCh. 8 - Prob. 8.3.3RQCh. 8 - Prob. 8.3.4PACh. 8 - Prob. 8.3.5PACh. 8 - Prob. 8.3.6PACh. 8 - Prob. 8.3.7PACh. 8 - Prob. 8.3.8PACh. 8 - Prob. 8.3.9PACh. 8 - Prob. 8.3.10PACh. 8 - Prob. 8.4.1RQCh. 8 - Prob. 8.4.2RQCh. 8 - Prob. 8.4.3RQCh. 8 - Prob. 8.4.4PACh. 8 - Prob. 8.4.5PACh. 8 - Prob. 8.4.6PACh. 8 - Prob. 8.4.7PACh. 8 - Briefly discuss the accuracy of the following...Ch. 8 - Prob. 8.1RDECh. 8 - Prob. 8.2RDECh. 8 - Prob. 8.3RDECh. 8 - Prob. 8.4RDECh. 8 - Prob. 8.5RDECh. 8 - Prob. 8.6RDECh. 8 - Prob. 8.7RDE
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