Part C: Economic Growth For 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, then X = 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 is the the ratio XB/XA after 35 years? Round your answer to the nearest first decimal. Number b. 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 per capita GDP? Round your answer to the nearest first decimal. Country A: Number Country B: Number c. 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% and 1.0%, 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: Number Country B: Number

Part C: Economic Growth For 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, then X = 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 is the the ratio XB/XA after 35 years? Round your answer to the nearest first decimal. Number b. 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 per capita GDP? Round your answer to the nearest first decimal. Country A: Number Country B: Number c. 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% and 1.0%, 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: Number Country B: Number

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 20RQ: For a high-income economy like the United States, what aggregate production function elements are...

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