A country starts in steady state. Due to a lost war, the country has to give up territory containing 50% of its capital stock and 10% of its population. This will cause Group of answer choices the economy to converge to a new higher steady state. the growth rate of output to rise initially as the economy begins to converge to the old steady state. the growth rate of output to rise initially as the economy begins to converge to a new lower steady state. the economy to enter a period of negative growth.

A country starts in steady state. Due to a lost war, the country has to give up territory containing 50% of its capital stock and 10% of its population. This will cause Group of answer choices the economy to converge to a new higher steady state. the growth rate of output to rise initially as the economy begins to converge to the old steady state. the growth rate of output to rise initially as the economy begins to converge to a new lower steady state. the economy to enter a period of negative growth.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions

Section: Chapter Questions

Problem 1WNG

See similar textbooks

Similar questions

What are the problems of the economic growth and consumption?
True/ False The economy should always run on its full capacity of production.
The term demographic transition refers to ____. a. the slowing down in the growth of a population as it approaches the carrying capacity b. the decline in death rates followed by a decline in birth rates that occurred when the germ theory of disease was discovered c. a stabilization of crude birth rates d. the decline in death rates followed by decline in birth rates when a country becomes industrialized e. a requirement for a population to reach a specific size before it becomes stable
The steady occurs when the economy is in equilibrium. Specifically, the steady state refers to the situation where K/N and Y/N are constant. K/N will not change when investment per worker equals depreciation per worker. During the adjustment process, the growth rates of Y, Y/N, and K/N will all be negative. Once the steady state is reached, these variables are constant and the growth rates will be zero. True False
The real GDP per person in a country A has grown about 4 percent per year. When this country' GDP will be double?
What is the relationship between economic prosperity and democracy? O The probability that a new democracy is stabile is higher in more prosperous countries Economies in democratic states grow more rapidly than economies in non-democracies O The probably that a democracy is overthrown in a coup increases as prosperity goes up Authoritarian regimes are less dependent on economic prosperity for their survival than democracies
Which of the following will inevitably lead to a rise in production? a. decreased wealth and higher taxes among the populaceb. Government spending growth and a substantial rise in input costsC. poverty among the populace and a significant rise in the cost of goods and servicesd. Government spending going up and new, more efficient technologies being developed
In the short term and with almost full employment, it is most realistic to increase GDP / per capita by: a. Employees move to sectors with higher labor productivity b. Labor productivity becomes higher, e.g. through increased investment and better education c. Taxes are reduced so that it pays to work harder d. The state supports industries with highly expected growth potential
What is the central economic proplem?
Select one or more: a. The trend growth rate over the period was around 2.14 % per annum. b. The graph shows that in 1950 UK GDP per capita was about £8.75. c. When actual output is below trend output the economy is in recession. d. The trend growth rate over the period was 0.9889% per annum.
то Part 4: Complete the table using the 2 countries you selected and the "People and Society" page of The CIA World Factbook Country 1: Birth Rate: Death Rate: EA TOUR Germany Infant Mortality Rate: 9.08 births/1,000 population (2022) 3.19 deaths/1,000 live births Life Expectancy: 11.98 deaths/1,000 population (2226 81.51 years Youth Dependency Ratio: 21.7 Elderly Dependency Ratio: Median Age: 47.8 years 33.7 Mother's Mean (average) Age at First Birth: 29.9 years (2020 est.) Country 2: Contraceptive Prevalence Rate (the percentage of women 18-49 who use or whose partner uses contraceptives): 67% (2018) Birth Rate: Part 5: Answer the following questi Death Rate: Japan 6.95 births/1,000 population (2022) 11.59 deaths/1,000 population (20zz) Infant Mortality Rate: 1.9 deaths/1,000 live births Life Expectancy: 84.83 years Youth Dependency Ratio: 21 Elderly Dependency Ratio: 48 Median Age: 48.6 years Mother's Mean (average) Age at First Birth: 30.7 years (2018 est.) Contraceptive Prevalence…
how Ricardian model results in an increase in production in the world