Suppose that in the year 2020 there are two different countries-Sparta and Rome each with a realGOP per capita of $45,000Real GDP per capita in Sparta grows at a rate of 2.2% per year.Real GDP per capita in Rome grows at a rate of 1.7% per year.Assume these growth rates continue.Using the Rule of 70, how many years will it take for the countries to hieve a real GDP per capitaof $90,000 per year?37 years for Sparta and 45 years for RomeO 32 Years for Sparta and 70 Years for RomeO 70 years for Sparta and 41 years for RomeO 32 years for Sparta and 41 years for RomeO 35 years for Sparta and 45 years for Rome

Real gross domestic product (real GDP) is an inflation-adjusted measure of an economy's output of…

Answered: Suppose that in the year 2020 there are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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%
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In theory, a greater number of poor and developing countries such as Ghana should be catching up with the rest of the world. However there are many examples of poor countries that are not growing and seem stuck in poverty. Some factors have a positive influence on growth and some have a negative influence. In the set of answers below you can only use each answer once. What is the influence on growth of... (Select for each one from the pic attached.) Corruption: ? lack of good roads: ? international trade: ? poorly secured property rights: ? microfinance: ?
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.
,0.30 Consider a numerical example using the Solow growth model. Suppose that F(K, N) = ZK 0 0.70, with d= 0.06, s = 0.10, n=0.02, and z=1, and take a N period to be a year. The steady-state level of income per capita is The steady-state level of consumption per capita is The golden rule level of capital per capita is (Round to two decimal places as needed.) (Round to two decimal places as needed.) (Round to two decimal places as needed.)
The economy's real GDP was $140 billion in 2019 and $280 billion in 2020. Its population was 15 million in 2019 and 20 million in 2020. What is the growth rate of real GDP per capital from 2019 to 2020? Your Answer:
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
The developed country has a savings rate of 30% and a population growth rate of 2% per year. Meanwhile, the developing country has a savings rate of 15% and population growth rate of 5% a year. Technology evolves at the rate of 8% and 2% in the developed and developing countries respectively. In both countries, δ = 0.05. Find the steady-state value of y for each country (up to three decimal places).
Suppose Egypt has a real GDP per capita of $28,000. If real GDP per capita grows at a 3.5% annual rate, how long will it take for real GDP per capita to reach $70,000 in Egypt?
Consider a numerical example using the Solow Growth Model. Suppose that F(K,N)=K^0.5N^0.5, with d = 0.1, s = 0.2, n = 0.02, and z = 1, and take a period to be a year. Determine capital per worker, income per capita, and consumption per capita in the steady state. The steady state per work (0.2)(1)k*)^0.5 = (0.02+0.1)k*
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

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