Suppose a country's population grows at the rate of 2% per year and its output grows at the rate of 3% per year. 2. а. Calculate its rate of growth of per capita output. b. If instead its population grows at 3% per year and its output grows at 2% per year, calculate its rate of growth of per capita output.

Suppose a country's population grows at the rate of 2% per year and its output grows at the rate of 3% per year. 2. а. Calculate its rate of growth of per capita output. b. If instead its population grows at 3% per year and its output grows at 2% per year, calculate its rate of growth of per capita output.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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(b) Which country has the highest growth rate of GDP per capita in 2024?
5. Suppose that the Country of Eldesarrollo has a gross savings rate of 25%, a depreciation rate of 3%, an incremental capital-output ratio of 2.75, a population growth rate of 1.5% per year, and a per capita income of $1500. a. Using the Harrod-Domar (or AK) growth model, calculate the implied rate of growth of total GNI in Eldesarrollo. b. What is the implied rate of growth of GNI per capita? c. How much would the rate of gross savings have to increase to raise the growth rate of total GNI to 9%? d. Suppose that one-quarter of all investment is completely wasted in Eldesarrollo. Returning to the original numbers, what is the resulting effective ICOR, and what is the corresponding new implied growth rate of total GNI?
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?
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6) How many years will Colombia grow with a GDP of $323 billion dollars at a growth rate of 4%? 7) How many years will Ukraine grow with a GDP of $153 billion dollars at a growth rate of 2%? 8) How many years will the Ghana grow with a GDP of $67 billion dollars at a growth rate of 6%?
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What type of economic growth is this country experiencing? Thanks!
1. Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 7 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country? 2. The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $100,000 to develop and only $.50 per unit to deliver to each cell phone customer. What will be the per-unit cost of the application if it sells 100 units? 1000 units? 1 million units? 3. Suppose that work hours in New Zombie are 200 in year 1 and productivity is $8 per hour worked. What is New Zombie's real GDP? If work hours increase to 210 in year 2 and productivity rises to $10 per hour, what is New Zombie's rate of…
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2. In the Solow growth model, suppose that the per-worker production function is given by y zk, with s = 0.25, d= 0.1, and n=0.02. (a) Suppose that in country A, z = 1. Calculate per capita income and capital per worker. (b) Suppose that in country B, z = 2. Calculate per capita income and capital per worker. (c) As measured by GDP per capita, how much richer is country B than country A? What does this tell us about the potential for differences in total factor productivity to explain differences in standards of living S across countries?