MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 4TY
To determine
Growth rate of potential
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Calculate real growth per capita in the following countries:
Instructions: Enter your responses rounded to one decimal place. If you are entering a negative number, be sure to include a negative
sign (-) in front of the number.
a. Democratic Republic of Congo: population growth=2.6 percent; real output growth = -1.4 percent.
Real growth per capita:%
b. Estonia: population growth=-0.3 percent; real output growth 4.3 percent.
Real growth per capita: %
c. India: population growth = 2.1 percent; real output growth 6.2 percent.
Real growth per capita: %
d. United States: population growth = 0.4 percent; real output growth 2.6 percent.
Real growth per capita:
%
Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?
Why do you think it is difficult for high-income countries to achieve high growth rates?
Knowledge Booster
Similar questions
- List the factors that account for increases or decreases in productivity growth rates.arrow_forwardIf the share of GDP used for capital goods is 0.08, the growth rate of productivity is 0.09, the growth rate of population is 0.02, the depreciation rate is 0.02, the initial capital/output ratio is 3.75, and the elasticity of GDP with respect to capital is 0.1, then what is the growth rate of the GDP per capita? Use three decimal places.arrow_forwardWhat policies do you think Brazil should adopt going forward to reignite economic growth?arrow_forward
- If the share of GDP used for capital goods is 0.3, the growth rate of productivity is 0.01, the growth rate of population is 0.04, the depreciation rate is 0.05, the initial capital/output ratio is 0.53, and the elasticity of GDP with respect to capital is 0.1, then what is the growth rate of the GDP per capita? Use three decimal places. Please show worked solution, thank you very mucharrow_forwardConsider two distinct countries, denoted as A and B. Initially, Country A had a per capita GDP of $10,000 and experienced a growth rate of 10%, while Country B had a per capita GDP of $40,000 and experienced a growth rate of 2%. Assuming that the growth rates remain unchanged, which country will have a higher per capita GDP when t = 35 time periods (years)? O Country B O Country A O All of these choices are correct. They are the samearrow_forwardOne of the biggest challenges for stimulating economic growth in high-income countries is Group of answer choices Meeting basic human needs like food, water, and shelter Limited investment opportunities Increasing education, innovation, and technology Determining how to wisely spend large reserves of savings to promote growtharrow_forward
- Identify one developed and one developing country. Research their recent economic growth rates. Analyze differences in the countries that would help lead to different rates of economic growth. In your response, be sure to avoid analyzing short-run factors of economic performance and focus on the factors that affect long-run economic growth.arrow_forwardDoes the growth of real GDP measure the economic growth rate accurately?arrow_forwardMacmillan Learning Classify the statements about growth as true or false. If a statement is an opinion, leave it unplaced. True Governments can control growth rates with the appropriate policies. The industrial revolution brought an era of increased growth rates in the United States Convergence will not occur because of technology growth Answer Bank False Growth in productivity is closely correlated with wage growth Human capital is equivalent to the number of years of education Technology and human capital work againat each other Rich countries all grow faster than poor countries. Poor countries all grow faster than rich countries South Korea's growth can be traced to mainly human capital deepeningarrow_forward
- what are the benefits of economic growth to a countryarrow_forwardThe fictitious country "Alpha" has a real GDP per person of $10,000. Instructions: Enter your responses rounded to the nearest penny (two decimal places). a. If Alpha has a 1% growth rate in real GDP per person, then after 15 years Alpha's real GDP per person is $ b. If Alpha has a 2% growth rate in real GDP per person, then after 15 years Alpha's real GDP per person is $ c. After 15 years, the difference in Alpha's real GDP per person based on the two growth rates is $arrow_forwardHypothetical data is given for the following countries. Calculate real growth per capita in the following countries: Instructions: Enter your responses rounded to one decimal place. If you are entering a negative number, be sure to include a negative sign (-) in front of the number. a. Democratic Republic of Congo: population growth = 2.8 percent; real output growth=-1.6 percent. Real growth per capita: % b. Estonia: population growth-(0.6) percent; real output growth-4.5 percent. Real growth per capita:[ % c. India: population growth=1.7 percent; real output growth = 5.9 percent. Real growth per capita: [ % d. United States: population growth 0.7 percent; real output growth = 2.8 percent. Real growth per capita: [arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc