Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
expand_more
expand_more
format_list_bulleted
Question
Chapter 9.A, Problem 1PA
(a)
To determine
The change in labor productivity and total factor productivity.
(b)
To determine
The change in the total factor productivity over the years.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
how do gains in worker productivity lead to gains in per capita GDP
a- As workers produce more, their wages will rise an d they will have more disposable income for consumption, leading to a rise in GDP per capita.
b- The amount a worker can produce
If there is a sharp increase in the number of workers, holding all other things constant, which of the following is likely in the short term?
a) increase real GDP per person but decrease real GDPb) raise real GDP but decrease real GDP per personc) raise both real GDP and real GDP per persond) decrease both real GDP and real GDP per person
Suppose the 50% of the income generated by an economy is paid to workers, thus implying that the remaining 50% is paid to capital.
If GDP grew by 4%, capital grew by 1%, and labor grew by 3%, then what was the growth rate in technology? (Record your answer as a whole number, and do not include a "%".)
Knowledge Booster
Similar questions
- What is capital deepening?arrow_forward. Consider the following data for an economy. Year 1 2 Real GDP $56,000 $78,500 Population 200 263 a. Calculate the real GDP growth rate. b. Using the rule of 70, approximately how many years will it take the economy's real GDP to double? Calculate the standard of living in each of the years. C. d. e. Using the values determined in part c, calculate the standard of living growth rate. Without using the rule of 70, how many years will it take for the standard of living to triple?arrow_forwardAssume that the growth rate of the capital stock in each period is determined by the level of output in the previous period. 1) An economy of 80 million people has ten percent of them engaged in research and development, where their productivity is 0.0035. The economy is on a balanced growth path, when suddenly 2.88 million people move from goods production into R&D, raising the fraction there to 13.6 percent. In the one period that begins with this labor reallocation, the growth rate of output is ________. [Refer to the instruction above.] A) 2.8% B) 0.0% C) 3.8% D) 2.2%arrow_forward
- An increase in the amount of human capital in the economy will ["decrease", "remain unchanged", "increase"] the productivity of labor. As a result, average real income in the economy will["decrease", "increase", "remain unchanged"] . PreviousNextarrow_forwardIf a nation's real GDP is growing by 6 percent per year, its real GDP will double in approximately ________. Answer to 2 decimal places.arrow_forwardLet’s think about two countries, Frugal and Smart. In Frugal, people devote 50% of GDP to making new investment goods, so ?=0.5, and their production function is ?=?‾‾√. In Smart, people devote 25% of GDP to making new investment goods, so ?=0.25 and their production function is ?=2?‾‾√. Both countries start off with ?=100. a. What is the amount of investment in each country this year? Frugal: Smart:arrow_forward
- which is true/false? 1.Development is both a means and an end in itself and such means and end are fairly constant for every country 2.Personal income is the income that is eventually spent or saved by the earner.arrow_forwardDuring the course of the twentieth century, the average workweek in the United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labor productivity?arrow_forwardAssume real per capita GDP in West Swimsuit is $8,000 while in South Darlinia it is $2,000. The annual growth rate in West Swimsuit is 2.33%, while in South Darlinia it is 7%. How many years will it take for South Darlinia to catch up to the real per capita GDP of West Swimsuit? What will the income of the two countries be when it is equal? solve it correctly please. I will rate accordingly. Ty-ped answer please...arrow_forward
- Please the answer correct please ASAP Don't answer by pen paper please. he golden rule level of capital refers to: Question 19Answer a. the level of capital that maximises output per worker. b. the level of capital that maximises the standard of living. c. the level of capital that maximises the level of output in the steady state. d. the level of capital that maximises consumption per worker. e. the level of capital that maximises consumption per worker in the steady state.arrow_forwardIn Ghana, the capital share of GDP is about 40 percent, the average growth in output is about 2 percent per year, the depreciation rate is about 3 percent per year, and the capital–output ratio is about 1.5. Suppose that the production function is Cobb–Douglas and that Ghana has been in a steady state.a. What must the saving rate be in the initial steady state? [Hint: Use the steady-state relationship, sy = (δ + n + g)k.]b. What is the marginal product of capital in the initial steady state?c. Suppose that public policy alters the saving rate so that the economy reaches the Golden Rule level of capital. What will the marginal product of capital be at the Golden Rule steady state? Compare the marginal product at the Golden Rule steady state to the marginal productin the initial steady state. Explain.d. What will the capital–output ratio be at the Golden Rule steady state? (Hint: For the Cobb–Douglas production function, the capital–output ratio is related to the marginal product of…arrow_forwardIn Ghana, the capital share of GDP is about 40 percent, the average growth in output is about 2 percent per year, the depreciation rate is about 3 percent per year, and the capital–output ratio is about 1.5. Suppose that the production function is Cobb–Douglas and that Ghana has been in a steady state.a. What must the saving rate be in the initial steady state? [Hint: Use the steady-state relationship, sy = (δ + n + g)k.]b. What is the marginal product of capital in the initial steady state?c. Suppose that public policy alters the saving rate so that the economy reaches the Golden Rule level of capital. What will the marginal product of capital be at the Golden Rule steady state? Compare the marginal product at the Golden Rule steady state to the marginal productin the initial steady state. Explain.d. What will the capital–output ratio be at the Golden Rule steady state? (Hint: For the Cobb–Douglas production function, the capital–output ratio is related to the marginal product of…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax