5) Suppose that an economy starts off with a per capita real GDP of $5,000. How large will the per capita GDP of this country be if it grows at an annual rate of 6% for 40 years? Use compound growth rate formula. Show your calculations and the unit of account of your answer. Answer: 6) The graph below represents per-worker production functions for the same country. Answer the following questions using this graph. Real GDP per hour worked, Y/L $17,000 16,400 16,000 15,000 Production function3 B Production function2 E Production function1 a) Answer: $50,000 60,000 70,000 Capital per hour worked, K/L Which concept is illustrated by the movement from point A to B or from point B to C?
5) Suppose that an economy starts off with a per capita real GDP of $5,000. How large will the per capita GDP of this country be if it grows at an annual rate of 6% for 40 years? Use compound growth rate formula. Show your calculations and the unit of account of your answer. Answer: 6) The graph below represents per-worker production functions for the same country. Answer the following questions using this graph. Real GDP per hour worked, Y/L $17,000 16,400 16,000 15,000 Production function3 B Production function2 E Production function1 a) Answer: $50,000 60,000 70,000 Capital per hour worked, K/L Which concept is illustrated by the movement from point A to B or from point B to C?
Chapter8: Productivity And Growth
Section: Chapter Questions
Problem 2.4P
Related questions
Question
Transcribed Image Text:5)
Suppose that an economy starts off with a per capita real GDP of $5,000.
How large will the per capita GDP of this country be if it grows at an annual rate of 6% for 40 years?
Use compound growth rate formula. Show your calculations and the unit of account of your answer.
Answer:
6)
The graph below represents per-worker production functions for the same country. Answer the
following questions using this graph.
Real GDP
per hour
worked, Y/L
$17,000
16,400
16,000
15,000
Production
function3
B
Production
function2
E
Production
function1
a)
Answer:
$50,000
60,000
70,000
Capital per hour
worked, K/L
Which concept is illustrated by the movement from point A to B or from point B to C?
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