Average Labor Productivity (Y/L) 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 Per Worker Production Function Capital per worker = 2.3 Average labor productivity = 4.36 2.1 Real GDP per capita = 65940.37 2.2 Required investment = 34500.00 Population = 348,800 persons Population, and hence labor, grows at a rate of 5 percent per year. Capital depreciates at a rate of 15 percent per year. In the base year: Capital per Worker (K/L) The graph above shows the per-worker production function for a hypothetical country. We will make 2020 as our base year and study how economic conditions will compare to this year in 2021 under different assumptions about national saving. So, starting from the next question all the questions about economic growth will be about 2021 under different scenarios. Here are the pertinent information about the base year. 2020 (The Base Year) Amount of physical capital (K) = 230,000 units Number of workers (L) = 100,000 persons 2.3 units units 2.4 units units 2.5 2.6 2.7

Average Labor Productivity (Y/L) 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 Per Worker Production Function Capital per worker = 2.3 Average labor productivity = 4.36 2.1 Real GDP per capita = 65940.37 2.2 Required investment = 34500.00 Population = 348,800 persons Population, and hence labor, grows at a rate of 5 percent per year. Capital depreciates at a rate of 15 percent per year. In the base year: Capital per Worker (K/L) The graph above shows the per-worker production function for a hypothetical country. We will make 2020 as our base year and study how economic conditions will compare to this year in 2021 under different assumptions about national saving. So, starting from the next question all the questions about economic growth will be about 2021 under different scenarios. Here are the pertinent information about the base year. 2020 (The Base Year) Amount of physical capital (K) = 230,000 units Number of workers (L) = 100,000 persons 2.3 units units 2.4 units units 2.5 2.6 2.7

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Subpart 1-3
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