2020 (The Base Year) Amount of physical capital (K) = 230,000 units Number of workers (L) = 100,000 persons Population = 348,800 persons %3D Population, and hence labor, grows at a rate of 5 percent per yea Capital depreciates at a rate of 15 percent per year. Capital Per worker = Average labor Productivity= Real GDP= Real GDP per capita=
2020 (The Base Year) Amount of physical capital (K) = 230,000 units Number of workers (L) = 100,000 persons Population = 348,800 persons %3D Population, and hence labor, grows at a rate of 5 percent per yea Capital depreciates at a rate of 15 percent per year. Capital Per worker = Average labor Productivity= Real GDP= Real GDP per capita=
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1
Transcribed Image Text:2020 (The Base Year)
Amount of physical capital (K) = 230,000 units
Number of workers (L) = 100,000 persons
Population = 348,800 persons
%3D
Population, and hence labor, grows at a rate of 5 percent per year.
Capital depreciates at a rate of 15 percent per year.
Capital Per worker =
Average labor Productivity=
Real GDP=
Real GDP per capita=
Growth rate GDP 2020-2021=
Growth rate GDP per capita=
Transcribed Image Text:Per Worker Production Function
4.56
4.54
4.52
4.50
4.48
4,46
4,44
4.42
4.40
4.38
4.36
4.34
4.32
4.30
4.28
4.26
4.24
4.22
4.20
4.18
4.16
4.14
4.12
4.10
4.08
4.06
4.04
4.02
4.00
3.98
3.96
1.9
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
Capital per Worker (K/L)
Scenario 1: In 2020 people saved 46,000 units of their real GDP.
In 2021:
2.4
Capital per worker =
units
4.44
Average labor productivity =
units
Real GDP = 240000.00
units
Real GDP per capita =
units
Rate of growth of real GDP from 2020 to 2021 =
percent
Rate of growth of real GDP per capita from 2020 to 2021 =
percent
Can you make sense of these growth rates?
Average Labor Productivity (Y/L)
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