Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 2PA
(a)
To determine
Impact of war on total output and output per worker.
(b)
To determine
The output per worker in the post war economy.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What is the difference between extensive and intensive growth? Why was the
Soviet Union successful in terms of extensive growth under Stalin, but failed to
succeed in terms of intensive growth during the reform periods under Khrushchev
and Gorbachev?
Economics
Assume that the sum of population growth and
the depreciation rate is equal to
the saving rate. Are there steady states? If yes,
what are the steady states capital per
person?
Please be simple with the terms
Suppose you add a variable rate of population growth to a two-sector model of growth.
Draw and properly label a graph on how the production function, investment requirement line, and saving line look like.
Does the addition of the variable rate of population growth to this model help you explain anything that a simpler two-sector model with a fixed rate of growth, or a one sector model with variable population growth, cannot? Expound.
Knowledge Booster
Similar questions
- What were the effects of Divergence on economic growth in Europe and China?arrow_forwardis it true or false that the growth rate of the GDP per worker for an economy where the capital to output ratio is constant represent the long run economic growth? whyarrow_forwardInternational data show a positive correlation between political stability and economic growth. Through what mechanism could political stability lead to economic growth?arrow_forward
- List the factors that account for increases or decreases in productivity growth rates.arrow_forwardSuppose some of the country's capital is suddenly destroyed. If the depreciation rate, savings rate, and production function remain unchanged, then the real growth rate will _____ in the short run and the steady-state level of capital will _____ increase, decrease, or stay the same?arrow_forwardLet's assume that in a South American country, the nominal GDP went down by 3%, while, the price level went down by 4%. What is the real GDP growth rate during this period in percentages?arrow_forward
- Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run output per capita will be greater in B than in A. economic growth will be higher in A than in B. more information is needed to answer this question. output per capita will be greater in A than in B.arrow_forwardGraphically explain the economy’s production possibility curve in terms of economic growth.arrow_forwardAssume there is a second economy ( country B ) with everything identical to country A except for the rate of population growth , which is 2 percent . Answer the following questions for country B. Assume both countries start a k = 0 , which country grows more in the short run ( before steady state is reached ) , as given by the rate of growth of output per worker ? ( hint : the further away from steady state , the faster the growth towards it ). O. Country A O. Same for both O. Country Barrow_forward
- In your opinion, why do some countries experience sustained levels of high growth that propel them into the ranks of the rich while others stagnate seemingly in perpetuity?arrow_forwardSuppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign (a. portfolio, b. direct) investment in Argentina. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply. a. Protecting property rights and enforcing contracts b. Imposing restrictions on foreign ownership of domestic capital c. Providing tax breaks and patents for firms that pursue research and development in health and sciences d. Increasing taxes on income from savings What is a significant factor in long-run economic growth that Robert Fogel, an economic historian, is best known for suggesting? a. Improvements in the protection of property and enforcement of contracts through the maturation of the civil and criminal justice systems b. Improvements in technology from the incentives…arrow_forward
arrow_back_ios
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
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