Suppose that in 2014 China's real GDP is growing at 9 percent a year and its population is growing at 2.0 percent a year. If these growth rates continue, then China's real GDP per person in will be twice what it is in 2014. O A. 2085 О В. 2022 ОС. 2017 O D. 2024

Suppose that in 2014 China's real GDP is growing at 9 percent a year and its population is growing at 2.0 percent a year. If these growth rates continue, then China's real GDP per person in will be twice what it is in 2014. O A. 2085 О В. 2022 ОС. 2017 O D. 2024

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. It is 1960. China's economy is in its steady state. It is predicted that the Chinese population will expand multi-fold over the next few decades. As an expert in economic growth, you have been called in to provide predictions about the economic effect of such population growth. a. Using the Solow diagram below, illustrate the effect on an increase in population growth on the post-1950 Chinese economy. у, і, б ہے k* Output Investment k Dep + Pop growth b. Explain (briefly) why this policy made sense to the government in 1960.
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
The table below shows the GDP of a country measured in trillions of dollars. What is the growth rate of the GDP of this country in 1999? Year 1998 1999 2000 2001 Profit $526.42 $527.10 $533.69 $541.70 O a) -0.02% O b) 0.04% O c) 0.08% O d) 0.13% O e) 0.18% O f) 0.25% g) There is not enough information to tell.
If real GDP per capita is increasing, the rate of real GDP growth is: O less than the rate of population growth. O greater than the rate of population growth. less than the rate of inflation. greater than the rate of inflation.
12. According to Solow's model of economic growth, what determines the growth rate of income per person for a nation that is not in its steady state? What determines the growth rate of income per person for a nation that is in its steady state? In what sense is technological progress necessary for sustained growth of income per person in Solow's model?
Consider the Solow growth model with no population growth and no tech- nology growth, i.e., n = x = 0. Output is created by a Cobb-Douglas pro- duction function combining Labor, Lt, and capital, Kt, such that output Yt is given by Y₁ = A+ KL₁-a = = Ao and Recall that, without population growth, Lt Lo and assume that Lo = 10. Furthermore, recall that, without technology growth, At assume that A0 = 2. Assume that the savings rate is s = 0.2, the depre- ciation rate is 8 = 0.1, and that the capital share is a = 0.3. A lower case letter denotes a variable in per capita. For example, kt= Kt/Lt. In the following questions, choose the closest number. What is the value of kss? (a) 72 (b) 27 (c) 7.2 (d) 2.7 What is the value of Yss for the Economy described in Question 7 (a) 36 (b) 3.6 (c) 2.7 (d) 27 Suppose that the economy described in Question 7 economy starts with Ко = 10. Choose the correct one for the change in capital over time. (a) fall (b) grow (c) Once dropped, it grows (d) unchange…
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Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total population in an economy is equal to 1, depreciation rate is 5 percent and saving rate is 10 percent. Then the steady-state level of capital is about: 1.3 O b. 0.3 О с. 0.8 Od. 2.8 O e. 1.6
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