Please correct answer and don't used hand raiting Part C: Economic GrowthFor the following questions, you will need the following formula: let Xo be the initial value, X+ be the value after t periods and g be the growth rate by period, thenX = Xo (1+g)* .You may also need the log properties: log(ab) = blog(a) and log(ab) = log(a) + log(b). The properties imply:log(x) = log(X) + t log(1 + g).a. Suppose the initial real per capita GDP for countries A and B is 11 thousand dollars. If the annual growth rates of countries A and B are respectively 3.9% and 5.9%, what isthe the ratio XB/XA after 35 years? Round your answer to the nearest first decimal.Numberb. Suppose the annual growth rates of countries A and B are respectively 3.9% and 5.9%. How many years it will take for each country to double their respective real percapita GDP? Round your answer to the nearest first decimal.Country A: NumberCountry B: Numberc. Suppose the initial real per capita GDP of countries A, B and C are respectively 10, 10 and 50 thousand dollars. If their annual growth rates are respectively 3.9%, 5.9% and1.0%, how many years it will take for countries A and B to converge to country C? Round your answer to the nearest first decimal.Country A: NumberCountry B: Number

a) For the ratio XB/XA after 35 years:- Initial value (X₀) = 11,000 for both countries- Country A…

Answered: Part C: Economic Growth For the…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Productivity And Growth

Section: Chapter Questions

Problem 2.4P

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An economy starts off with a GDP per capital of 12,000 euros. How large will the GDP per capita be if it grows at an annual rate of 3 for 10 years? 3 for 30 years? 6 for 30 years?
Over the past 50 years, many countries have experienced an annual growth rate in real GDP per capita greater than that of the United States. Some examples are China, Japan, South Korea, and Taiwan. Does that mean the United States is regressing relative to other countries? Does that mean these countries will eventually overtake the United States in terms of the growth rate of real GDP per capita? Explain.
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Suppose that the annual rates of growth of real GDP of Econoland over a five-year period were as follows: Year Growth Rate 1 4% 2 28 3 -2% 4 48 5 6% What was the average of these growth rates in Econoland over these five years? Instructions: Round your answer to one decimal place. % What term would economists use to describe what happened in year 3? (Click to select) If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been the average growth rate? 1%
1.1. Basic properties of growth rates. Use the fact that the growth rate of a variable equals the time derivative of its log to show: (a) The growth rate of the product of two variables equals the sum of their growth rates. That is, if Z(t) = X(t)Y(t), then Ż(t)/Z(t) = [X(t)/X(t)] + [Ÿ(t)/Y(t)]. (b) The growth rate of the ratio of two variables equals the difference of their growth rates. That is, if Z(t) = X(t)/Y(t), then Ż(t)/Z(t) = [X(t)/X(t)]-[Y(t)/Y(t)]. (c) If Z(t) = aX(t)a, then Ż(t)/Z(t) = aX(t)/X(t).
1. Consider the following Romer model of economic growth: Y₁ = A₁Lyt AA, = ZA,L, Lat = Lyt= = L Lat = lL (a) If 4₁ = 100, ē = 0.1,ī = 1/3,000, [= 1,000, and what is the growth rate of knowledge in this economy? (b) What is the growth rate of per capita output in this economy? (c) Using the information from year 1, what is the level of per capita output in this economy in year 5?
rowth: Homework Saved years Help Save & Ex Suppose that real GDP per capita in the United States is $53,500. If the long-term growth rate of real GDP per capita is 4.5% per year, how many years will it take for real GDP per capita to reach $107,000? Instructions: Enter your answer as a whole number. Chac
Regard x and y as continuous variables. If x grows at 3% rate and y grows at 2% rate, what is the growth rate of z = x2y2? a. 0.5% b. 1.5% c. 2.5% d. None of above.
How can we measure growth over the very long run? Te poorest countries in the world have a per capita income of about $600 today. We can reason-ably assume that it is nearly impossible to live on an income below half this level (below $300). Per capita income in the United States in 2015 was about$51,000. With this information in mind, consider the following questions.(a) For how long is it possible that per capita income in the United Stateshas been growing at an average annual rate of 2% per year?(b) Some economists have argued that growth rates are mismeasured. Forexample, it may be difcult to compare per capita income today with percapita income a century ago when so many of the goods we can buy todaywere not available at any price then. Suppose the true growth rate in thepast century was 3% per year rather than 2%. What would the level of percapita income in 1800 have been in this case? Is this answer plausible?
5. The real GDP per capita in Colombia was $3,692 in 2000 and $5,889 in 2020. What is the average annual growth rate of the real GDP per capita from 2000 to 2020? Please use the log formula.
Small differences in growth rates in the size of the economy, over several decades, will result in big differences in the size of the economy. Pretend we start in 1950 and the U.S. growth in real GDP has been around 3.15%. This has resulted in real GDP growing 8 times over this 70-year period (1950 to 2020). If real GDP growth had been 4.0%, real GDP would be times larger. a. 8 (about the same growth as with 3.15% growth) b. 10 С. 14 d. 16
2. Recall that general form of fundamental equation of growth in Solow model is described as follows: k: = s f(k) – (gs + 5)ka %3D Noting that at steady-state ks = 0 and hence a Using the fact kss= 0, show the steady-state graphically and provide economic interpretation of the steady-state condition s- f(k ss) = (gs + 8)k s- b. Using the same graph you draw in part (a) explaim the transitional dynamics of the Solow. Hint: Define what happens if k. ks-

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