Please answer question 2 & 3. Intermediate Macroeconomics, Chapter 4 nel,1274.4 Exercisessbicod hasdioeoolslngo) S. seeaYei ted loo-ddo i noonu noitouh ngExercise 4.1 (The U.S. Population Slowdown and Income Per Capita).noitaluqoq bnn losig)U.S. Population in Selected Yearso bns boirsq aifsbom wolo2 adt oYearToMood o (n or1870anbron ber boaont1871Population in millionsottslogobiw40.24tadn toq lesiqes41.10S c 2015abon hec321.08wolod ards lo eoteteng sdi lo eod ai A bas A paiepa sige323.302016V ent por yolssa Jobomtheal output1. Using the information provided in the table, calculate the populationbojon growth rate between 1870 and 1871 and between 2015 and 2016. Denotethese two numbers n and n', respectively.sTbalonab bast baslo Todmun odt tadd osogqueI>o > 0 dtiw T = (.T) s90.1),2. Suppose that the depreciation rate is 10 percent per year (8 =0odT (n+I)=14.e adt boinoq roq 0

In economics, a production function is a mathematical relationship that shows the maximum amount of…

= 0.1), 2. Suppose that the depreciation rate is 10 percent per year (8 = el tsda boinoq Tag O< sti edd Ja awong etohow that the savings rate is 25 percent (o = 0.25), and that the production xi ei baal to tos sdT olderota ton at suguo bas leiqsa leoievilo on ai function is of the Cobb-Douglas form, that is, Y; = AK¢L;-ª, where 7admn baxd s ai Toedw a boirsq lls 1ol T T,ai Jedlt omit o Yt, Kt, and Lt denote, respectively, output, the stock of capital, and %3D odT3(n+1): %3D 1970 population in period t, and a and A are constant parameters. Assume that a = 0.3. Let y* and y denote the steady-state output per capita %3D oirog doo ow oguqo bail S. associated withn and n', respectively. Calculate the percentage in- i crease in long-run output per capita caused by a permanent fall in the population growth rate from n to n', that is, calculate (y*/y*-1) × 100.

= 0.1), 2. Suppose that the depreciation rate is 10 percent per year (8 = el tsda boinoq Tag O< sti edd Ja awong etohow that the savings rate is 25 percent (o = 0.25), and that the production xi ei baal to tos sdT olderota ton at suguo bas leiqsa leoievilo on ai function is of the Cobb-Douglas form, that is, Y; = AK¢L;-ª, where 7admn baxd s ai Toedw a boirsq lls 1ol T T,ai Jedlt omit o Yt, Kt, and Lt denote, respectively, output, the stock of capital, and %3D odT3(n+1): %3D 1970 population in period t, and a and A are constant parameters. Assume that a = 0.3. Let y* and y denote the steady-state output per capita %3D oirog doo ow oguqo bail S. associated withn and n', respectively. Calculate the percentage in- i crease in long-run output per capita caused by a permanent fall in the population growth rate from n to n', that is, calculate (y/y-1) × 100.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 25CTQ: Cross country comparisons of GDP per capita typically use purchasing power parity equivalent...

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