Suppose country X currently produces $1000 of goods and services per year with a constant growth rate of 2.0% per year. Country Y's production is currently $800 with growth of 3.0% per year. Using the rule of 72, how long does it take for country X's production to double? Using the rule of 72, how long does it take for country Y's production to double? years After how long will the two countries have the same level of production? Estimate the level of production when the two countries produce the same amount. $ 36 years 24 years

Suppose country X currently produces $1000 of goods and services per year with a constant growth rate of 2.0% per year. Country Y's production is currently $800 with growth of 3.0% per year. Using the rule of 72, how long does it take for country X's production to double? Using the rule of 72, how long does it take for country Y's production to double? years After how long will the two countries have the same level of production? Estimate the level of production when the two countries produce the same amount. $ 36 years 24 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 0 10 20 30 40 50 REFR 37. Assuming robots represents capital goods and beer consumer goods, and the…

A: The production possibility frontiers show the different combinations of two goods that can be…

Q: Consider the two-country model of technology growth. Suppose that yA,1 > YA,2 and that the two…

A: The two-country model of technology growth is an economic model that analyzes the long-run economic…

Q: Calculate the growth rate in the number of hours worked per capita, total output, and output per…

A: The growth rate in the number of hours worked per capita refers to the increment in the hours worked…

Q: Consider the following numerical examples for the Solow Growth Model: Economy A z=1 s=0.5…

A: The balanced growth path in the Solow model is a steady state in which economic variables like K and…

Q: Suppose we started out at the steady state capital stock in the basic Solow growth model. If the…

A: The Solow Growth Model, otherwise called the Solow-Swan Growth Model or the Exogenous Growth Model,…

Q: Sco's real GDP was 14,461 billion pesos in 2016 and 14,702 billion pesos in 2017 ico's population…

A: Solution: The values provided in the question are; Mexico's real GDP in 2016 is 14,461 billion.…

Q: Economic growth accounting studies show that Group of answer choices Improvements in physical…

A: Enterprise is carried out by entrepreneur and therefore enterprise would be occupationally mobile if…

Q: Approximately how long will it take Ethiopia to double its real GDF per person of S100 if its growth…

A: Since you have posted multiple independent questions, according to the guidelines, only the first…

Q: Determine the number of years it will take for the standard of living to double in each country.…

A: The Rule of 72 can be described as the simple mathematical formula that is used to calculate the…

Q: 1. According to the Penn World Tables, Real gross domestic product (GDP) per capita (2005 PPP…

A: The compound average growth rate (CAGR) is a measure used to determine the mean annual growth rate…

Q: For the first 2 questions: Suppose that income (output) grows at 15 percent, capital grows at 6…

A: ***Since the student has posted a question with multiple MCQs, the expert is required to solve only…

Q: Richland’s real GDP per person is $10,000, and Poorland’s real GDP per person is $5000. However,…

A: The term "gross domestic product" (GDP) refers to the production of goods and services at a specific…

Q: Consider the following table displaying annual growth rates for nations X, Y, and Z, each of which…

A: We have a table that displays annual growth rates for nations X, Y, and Z each of which entered 2020…

Q: 1. A) Discuss the relationship between trade and economic growth. What are the key channels through…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Define economic growth and discuss its utility at the scale of one country and at the global scale.

A: Economic growth is the rise in overall level of output of an economy. The most common way to measure…

Q: Table: Growth Rates and Real GDP per Capita Country A Country B $5,000 $10,000 6% Real GDP per…

A: Gross Domestic Product (GDP) is a monetary measure of the market value of all final goods and…

Q: Country A and Country B initially have the same real GDP per capita. Country A experiences no…

A: GDP refers to the value of final goods and services produced in an economy. Real GDP is the value of…

Q: If country A has currently GDP per capita of $65,000 and economic growth rate of 2%, and Country B…

Q: An economy described by the Solow growth model has the following production function: y = VR A.…

A: The economic growth model that analyzes changes in the output level over a period of time in an…

Q: In 2019 a country has 7.48% growth in real gdp, and uses two factors of production: capital (K) and…

A: Assume the share of capital in production is 40% and share of labor in production is 60% Production…

Q: Real GDP per capita in the country of Arcadia grew from about $4,703 in 1900 to about $42,731 in…

A: The term gross domestic product refers to the situation under which the overall flow of products and…

Q: would deregulation and privatization as well as increased competition be likely to increase mexico…

A: The privatization is the process of transferring the ownership of the public sector enterprises into…

Q: 2015 US Dollar GDP per capita (constant 2015 USD) 1960 1970 1980 2000 1990 Time(Year) Australia…

A: GDP per capita is a per capita income which is the ratio of country's gross domestic income and…

Q: Suppose that two nations start out in 2007 with identical levels of output per work hour-say, $100…

A: The nations start out in 2007 with same level of output $100. Productivity Growth rate of both the…

Q: Suppose China’s GDP is growing by 7% a year and its population grows by 1% a year. Also suppose that…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: South Africa's real GDP was 3,120 billion rand in 2017 and 3,145 billion rand in 2018. South…

A: The real economic growth rate, also known as the real GDP growth rate, is a measure of economic…

Q: The table below shows the level of real GDP and real GDP per capita growth rates for a select set of…

A: The Gross Domestic Product (GDP) is the summation of the money value of all the final goods and…

Q: Based on article "Technology and economic growth: From Robert Solow to Paul Romer" by Rui Zhao,…

A: A steady-state level in the Solow growth model is an equilibrium point where different economic…

Q: Real GDP per capita in the country of Arcadia grew from about $4,666 in 1900 to about $42,069 in…

A: The situation in which the overall flow of products and goods is calculated in the domestic market…

Q: If country A’s and country B’s GDP per capita are $10,000 and $5,000 this year, respectively.…

A: Ans. ) Given in the question, there are two countries, A and B. Also, it is given that country A's…

Question

Suppose country X currently produces $1000 of goods and services per year with a constant growth rate of 2.0% per year. Country
Y's production is currently $800 with growth of 3.0% per year.
Using the rule of 72, how long does it take for country X's production to double?
Using the rule of 72, how long does it take for country Y's production to double?
years
After how long will the two countries have the same level of production?
Estimate the level of production when the two countries produce the same amount. $
36 years
24 years

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define national production and growth rate

VIEW

Step 2: Figure out how many it will take for X to double its output

VIEW

Step 3: Figure out how many it will take for Y to double its output

VIEW

Step 4: Figure out after how many years both will have same level of production

VIEW

Step 5: Calculate the amount when both will produce the same amount

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 6 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Explain how each of the three conditions Smith describes would promote economic growth
Between 1970 and 2005, Chinaâ€™s GDP per capita grew at an average rate of 7.3% per year while GDP per capita in the US grew at an average rate of 2.2%. In 2005, US GDP per capita was $36,806 and Chinese GDP per capita was $5,955. Assuming that the two countries continue to grow at these rates, in what year will China overtake the US in terms of GDP per capita?
Suppose the GDP growth resulting from physical capital in an economy is 1%, and the growth resulting from human capital is 2%. If the annual growth rate of GDP is 5%, the growth resulting from technology equals: 1% 2% 3% 4%
Please see below. Need asap please.
Nigeria's average real GDP per capita growth from 1961 to 2019 is 2.4%. Using the Rule of 70, approximately how many years will it take for Norway's real GDP per capita to double? one decimal place.
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
What is the implication of the diminishing returns to physical capital for economic growth of different countries over time? (Hint: think about what is predicted to happen to the gap between rich and poor countries).
Consider a numerical example using the Solow Growth Model, for 2 countries.Country A: d=0.1, s=0.3, n=0.01, z=1, F(K,L)=K0.3N0.7 Country B: d=0.1, s=0.2, n=0.01, z=1.5, F(K,L)=K0.4N0.6Which Country has a higher level of GDP per capita in steady state? Country A Country B Not enough information
Answer the following options Q#9) What has been true about the long term growth rate and growth path followed by the advanced nations since 1750 – the dawn of the “industrial revolution”? (a) GDP growth has been modest, continuing the same trend from previous eras (b) GDP growth has increased enormously due to technical advances Q#10) When the government takes the lead and pro-actively guides, supports and fosters technology advances and innovation, such as with the Internet, in aero- space (NASA) or Covid19 vaccines, which theory of economic growth is utilized? (a) Neo-Classical Theory (b) Classical Theory (c) New Growth Theory
Answer the following questions. Instructions: Enter your answer as a whole number. a. A relatively small but steady economic growth rate can create a large change in economic prosperity in a fairly short period of time. This phenomenon is known as (Click to select) b. Using the rule of 70, suppose a person lived to be 70 years old in a country with an average annual growth rate in real GDP per capita of 2 percent. The average income during this person's lifetime would increase by approximately: times.
1. Many endogenous growth models feature so called scale effects: per capita growth rises when population growth rises. Some economists have criticized these models for this reason, since countries with faster population growth do not in general appear to also experience faster per capita income growth. Consider an economy that has access to a production technology Y = AKª L¹-a where Y is output, A is the level of technology, K is capital and L is the amount of labor in the economy. Capital evolves according to K = SY (thus, the depreciation rate 6 = 0). The population growth rate is n. (Throughout, gx, where x can be any of the variables in the model). i. Assume that technology is determined by A =BK What sort of endogenous growth model is this? Find gk in terms of the K, L, and other parameters of the model. ii. Write an expression for gy in terms of gk and g₁. What must be true for a balanced growth path to exist in this model? Solve for the balanced growth path value of gy and gy,…
An economy with a population growth rate of 1.5 percent and a rate of technological growth of 2.5 percent is in the steady state. If the capital- output ratio is 2, depreciation amounts to 10 percent of GDP, and capital income is 25 percent of GDP, then this economy would need to__________ the Golden Rule steady state. O. increase its saving rate to reach O. do nothing to its saving rate because this economy is already at O. decrease its saving rate to reach O. decrease the steady-state stock of capital per effective worker to reach