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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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)=K0.4N0.6 Which Country has a higher level of GDP per capita in steady state? O Country A O Country B Not enough information
Calculate the following using the Rule of 70: 3) How many years will Vietnam grow with a GDP of $260 billion dollars at a growth rate of 7%? 4) How many years will India grow with a GDP of $3 trillion dollars at a growth rate of 3%? 5) How many years will the U.S. grow with a GDP of $19 trillion dollars at a growth rate of 1.9%?
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 the initial real per capita GDP for countries A and B is 7 thousand dollars. If the annual growth rates of countries A and B are respectively 2.6% and 4.6% , what is the the ratio GDP of country B over GDP of country A after 67 years? Round your answer to the nearest first decimal
11. In 2022 a country has the following data: GDP TFP Capital Labor Y A K L 400 1,100 20 The production function is Y = A¿KQ4 LQ.6 and the capital stock evolves according to Kt+1 growth rate of labor is 0.6% and TFP growth is 2%. Assume that population is equal to labor. Use the Solow model to calculate per-capita GDP in 2024 (two years later). (1 – d)Kt + It. The saving rate 22%, the depreciation rate is 10%, the (а) 498.32 (b) 504.42 (c) 516.96 (Right answer) (d) 548.87
Country alpha and beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 10 percent. In 14 years, Country Beta's GDP will be approximately that of Country Alpha one-half double quadruple one-fourth
Using the rule of 70 and assuming real GDP per capita increases at 4% per year, how many years will it take Boblandia's real GDP to increase from 10 to 80? Answer in number of years, rounded to two decimal places. If you calculate 6.125 years, enter 6.13.
Consider the following numerical examples for the Solow Growth Model: Economy A z=1 s=0.5 F(K,N)=K0.3N0.7 n=0.01 d=0.1 Economy B z=1 s=0.2 F(K,N)=K0.3N0.7 n=0.01 d=0.1 In which economy is GDP per capita higher in steady state? O Economy A O Economy B O Not enough Information
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 2 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?
A country has the following data on the average growth rates of its real GDP, population and capital accumulation over several decade: Real GDP growth rate=4.5%; Population growth rate=2%; Capital stock growth rate=4%. If the labor share to output=0.75 and capital share=0.25, how much is the contribution of improvement in total factor productivity (A) in the growth of real GDP?
in england, suppose GDP per capita grows by 3.0% per year for 19 years. by how many times does this economy grow?
Small differences in growth rates in the size of the economy, over several decades, will result in big differences in the size of the economy. Pretend we start in 1950 and the U.S. growth in real GDP has been around 3.15%. This has resulted in real GDP growing 8 times over this 70-year period (1950 to 2020). If real GDP growth had been 4.0%, real GDP would be times larger. a. 8 (about the same growth as with 3.15% growth) b. 10 С. 14 d. 16

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