1. Look at the table below and identify any noticeable patterns. What are the key concepts of the Solow Growth Model? What are its primary criticisms? Country Period Table 1: The Variety of Growth Experiences Real GDP per Person (in 2017 dollars) At Beginning of Period At End of Period Growth Rate (per year %) China 1900-2017 $794 $16,807 2.64 Japan 1890-2017 1,667 43,279 2.60 Brazil 1900-2017 863 15,484 2.50 Mexico 1900-2017 1,285 18,258 2.29 Indonesia 1900-2017 988 12,284 2.18 Germany 1870-2017 2,422 50,639 2.09 Canada 1870-2017 2,633 46,705 1.98 India 1900-2017 748 7,056 1.94 Argentina 1900-2017 2,542 20,787 1.81 United States 1870-2017 4,443 59,532 1.78 Pakistan 1900-2017 818 5,527 1.65 Bangladesh 1900-2017 691 3,869 1.48 United Kingdom 1870-2017 5,332 43,269 1.43 Source: Robert J. Barro and Xavier Salet-Hartrin, Economic Growth (New York: McGraw-Hill, 1995), Tables 10.2 and 10.3; World Bank online data; and author's calculations. To account for international price differences, data are PPP-adjusted when available. N. Gregory Mankiw, Principles of Macroeconomics, 9th Edition 2021 Cengage. 2. Why is the growth rate a more useful measure than absolute growth for tracking economic progress? Among the following metrics, which is the most appropriate for tracking and com- paring economic growth: Nominal GDP growth rate, Real GDP growth rate, or Real GDP per capita growth rate? Justify your answer.
1. Look at the table below and identify any noticeable patterns. What are the key concepts of the Solow Growth Model? What are its primary criticisms? Country Period Table 1: The Variety of Growth Experiences Real GDP per Person (in 2017 dollars) At Beginning of Period At End of Period Growth Rate (per year %) China 1900-2017 $794 $16,807 2.64 Japan 1890-2017 1,667 43,279 2.60 Brazil 1900-2017 863 15,484 2.50 Mexico 1900-2017 1,285 18,258 2.29 Indonesia 1900-2017 988 12,284 2.18 Germany 1870-2017 2,422 50,639 2.09 Canada 1870-2017 2,633 46,705 1.98 India 1900-2017 748 7,056 1.94 Argentina 1900-2017 2,542 20,787 1.81 United States 1870-2017 4,443 59,532 1.78 Pakistan 1900-2017 818 5,527 1.65 Bangladesh 1900-2017 691 3,869 1.48 United Kingdom 1870-2017 5,332 43,269 1.43 Source: Robert J. Barro and Xavier Salet-Hartrin, Economic Growth (New York: McGraw-Hill, 1995), Tables 10.2 and 10.3; World Bank online data; and author's calculations. To account for international price differences, data are PPP-adjusted when available. N. Gregory Mankiw, Principles of Macroeconomics, 9th Edition 2021 Cengage. 2. Why is the growth rate a more useful measure than absolute growth for tracking economic progress? Among the following metrics, which is the most appropriate for tracking and com- paring economic growth: Nominal GDP growth rate, Real GDP growth rate, or Real GDP per capita growth rate? Justify your answer.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 10SCQ: What are the advantages of backwardness for economic growth?
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Transcribed Image Text:1. Look at the table below and identify any noticeable patterns. What are the key concepts of
the Solow Growth Model? What are its primary criticisms?
Country
Period
Table 1: The Variety of Growth Experiences
Real GDP per Person (in 2017 dollars)
At Beginning of Period At End of Period
Growth Rate (per year %)
China
1900-2017
$794
$16,807
2.64
Japan
1890-2017
1,667
43,279
2.60
Brazil
1900-2017
863
15,484
2.50
Mexico
1900-2017
1,285
18,258
2.29
Indonesia
1900-2017
988
12,284
2.18
Germany
1870-2017
2,422
50,639
2.09
Canada
1870-2017
2,633
46,705
1.98
India
1900-2017
748
7,056
1.94
Argentina
1900-2017
2,542
20,787
1.81
United States
1870-2017
4,443
59,532
1.78
Pakistan
1900-2017
818
5,527
1.65
Bangladesh
1900-2017
691
3,869
1.48
United Kingdom
1870-2017
5,332
43,269
1.43
Source: Robert J. Barro and Xavier Salet-Hartrin, Economic Growth (New York: McGraw-Hill, 1995), Tables
10.2 and 10.3; World Bank online data; and author's calculations. To account for international price differences,
data are PPP-adjusted when available. N. Gregory Mankiw, Principles of Macroeconomics, 9th Edition
2021 Cengage.
2. Why is the growth rate a more useful measure than absolute growth for tracking economic
progress? Among the following metrics, which is the most appropriate for tracking and com-
paring economic growth: Nominal GDP growth rate, Real GDP growth rate, or Real GDP per
capita growth rate? Justify your answer.
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