PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4RQ
To determine
Describe whether the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Using the demand and supply of loanable funds, demonstrate the effect of the following on the interest rate. As a result, what would you expect to be the impact of the change on growth? (LO9-3)
a-Government increases spending.
b-Businesses become more productive.
c-The people as a whole save more.
a) Prepare a table and line graph showing the unemployment and economic growth rate for a Caribbean country and a developed country (other than the US) for the last 5 years. Examine the relationship observed between the two countries.
b) Identify THREE public policies that can stimulate employment and facilitate economic growth in an economy.
Use examples to clearly illustrate how EACH policy can stimulate employment and facilitate economic growth in your country.
(Max 750 words)
What are spillover effects and how do they affect growth? (LO27-4)
Chapter 4 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
Knowledge Booster
Similar questions
- The data of for 1960 shows that the real GDP per capita was $6,354 for Japan, $12,282 for Germany, and $13,780 for the United Kingdom. (2011 US$). Suppose Japan maintained a 3% annual growth rate of real GDP per capita, Germany a 2% annual growth rate and the United Kingdom a 1% annual growth rate. Then which of the three countries will have the highest real GDP per capita in 2040? (Click to select) The real GDP per capita in 2040 for Japan: The real GDP per capita in 2040 for Germany: [ The real GDP per capita in 2040 for the United Kingdom: (Give your answer rounded to the nearest whole number) :arrow_forward?Question 2.10: Calculate Growth Rate of Real Per Capita GDP Now suppose there are more goods and services and the economy is now open to trade with other countries. Based on this generated data and since you have already calculated nominal and real GDP, you will now determine the GDP deflator, real per capita GDP, as well as the growth rates in nominal GDP, real GDP, GDP deflator (price level), and real GDP per capita for this simple economy. (Round your answer to two decimal places.) Calculate the Growth Rate of Real Per Capita GDP from 2008 to 2009: Check Answer Year Nominal GDP (Billions of $) Real GDP Population (Billions of $) (Million) 2007 14451.9 15626 300.6 2008 14712.8 15604.7 303.4 2009 14448.9 15208.8 306.1 2010 14992.1 15598.8 308.6 2011 15542.6 15840.7 311.1 2012 16197 16197 313.3 2013 16784.9 16495.4 315.5 2014 17527.3 16912 317.7 2015 18224.8 17403.8 319.9 2016 18715 17688.9 322.2 2017 19519.4 18108.1 324.5arrow_forwardThe CDB said that its projection of growth comes after an extremely difficult year in which the economies of its 19 borrowing member countries (BMCs) contracted by 12.8 percent on average due to the onset of novel coronavirus. “In 2020, the majority of BMCs registered double-digit declines in GDP. Countries with significant tourism industries, such as The Bahamas, Barbados, Belize, Cayman Islands, Dominica, and Grenada, were hard-hit by a more than 70 percent drop in overnight visitors in 2020, which spilled over to affect other economic sectors. An increase in agricultural production in Jamaica could not prevent the economy from shrinking by 10.4 percent. Agriculture in Belize was affected by a severe drought from the previous year and then a reduction in tourism-related demand. The economy contracted by 13.3 percent. Guyana was the only economy to record economic growth (26 percent), solely due to the start-up of its first oil production. However, growth was lower than expected due…arrow_forward
- The "graying of America" will substantially increase the fraction of the population that is retired in the decades to come. To illustrate the implications for U.S. living standards, suppose that over the 56 years following 2016 the share of the population that is working returns to its 1960 level, while average labor productivity increases at the same rate as it did during 1960-2016. Under this scenario, what would be the net change in real GDP per person between 2016 and 2072? Average labor productivity 47,263 110,384 Instructions: Enter your response as whole numbers for dollar values and rounded to one decimal place for percentages. Real GDP per person in 2016: $ Real GDP per person in 2072: $ Net change in real GDP per person between 2016 and 2072: $ Year 1960 2016 Share of population employed 36.4% 46.8% which is an increase of % from 2016.arrow_forwardThe “graying of America” will substantially increase the fraction of the population that is retired in the decades to come. To illustrate the implications for U.S. living standards, suppose that over the 56 years following 2016 the share of the population that is working returns to its 1960 level, while average labor productivity increases at the same rate as it did during 1960–2016. Under this scenario, what would be the net change in real GDP per person between 2016 and 2072? Year Average labor productivity Share of population employed 1960 47,263 36.4% 2016 110,384 46.8% Instructions: Enter your response as whole numbers for dollar values and rounded to one decimal place for percentages.Real GDP per person in 2016: $51,660 (need help) Real GDP per person in 2072: $ (need help) Net change in real GDP per person between 2016 and 2072: $____________ , which is an increase of___________ % from 2016.arrow_forwardThe “graying of America” will substantially increase the fraction of the population that is retired in the decades to come. To illustrate the implications for U.S. living standards, suppose that over the 56 years following 2016 the share of the population that is working returns to its 1960 level, while average labor productivity increases at the same rate as it did during 1960–2016. Under this scenario, what would be the net change in real GDP per person between 2016 and 2072? Year Average labor productivity Share of population employed 1960 47,263 36.4% 2016 110,384 46.8% Instructions: Enter your response as whole numbers for dollar values and rounded to one decimal place for percentages.(need help)Real GDP per person in 2016: $ (need help) Real GDP per person in 2072: $ (need help) Net change in real GDP per person between 2016 and 2072: $____________ , which is an increase of___________ % from 2016.arrow_forward
- Economics Consider an economy whose capital stock K grows at 2.3 % per year and whose labor force L grows at 0.9 % per year. In this economy Y = K1/3 L2/3. The growth rate of y = Y/L is equal to (enter percent value rounded off to 1 decimal place). Answer: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_forwardIn a rich country A, the gross domestic product 1 per person is r = 53,000 (US dollars). In a poor country B, the GDP per person is p = 7,000. Suppose that the GDP of country A grows by 5% per year, and that an economic miracle in country B begins to propel a growth of 9% per year. Assume these growth rates are constant. 1) Over how many years does the absolute difference in GDP between rich country A and poor country B increase? 2) How many years does it take for the GDP of country B to exceed that of country A? (Justify your answers.)arrow_forward
- The real GDP in the second quarter of 2019 was found to be $500,000 and the number of hours worked was 5,000. In the second quarter of 2020, the real GDP increased to $720,000 while the number of hours worked increased to 6,000. Given these values, solve for labor productivity in both quarters and solve for the growth rate of labor productivity between the quarters.arrow_forwardWhich of the following is a true statement? Multiple Choice Economists who support economic growth say that it is the most practical route to the higher standards of living that the vast majority of people desire. Most economists believe that the recent rise in the average rate of productivity growth implies an end to the business cycle. Most economists believe that increases in real GDP actually produce decreases in overall economic well-being because of spillover costs. Mainstream economists disagree as to whether the rate of productivity growth was higher between 1995 and 2012 or between 1973 and 1995.arrow_forwardWhat are THREE public policies that can facilitate economic growth in a Caribbean economy. Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate the nominal and real GDP in 2006 and 2007, the GDP deflator and the growth rate in real output.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education