The "graying of America" will substantially increase the fraction of the population that is retired in the decades to come. To illustratethe implications for U.S. living standards, suppose that over the 56 years following 2016 the share of the population that is workingreturns to its 1960 level, while average labor productivity increases at the same rate as it did during 1960-2016. Under this scenario,what would be the net change in real GDP per person between 2016 and 2072?Average labor productivity47,263110,384Instructions: Enter your response as whole numbers for dollar values and rounded to one decimal place for percentages.Real GDP per person in 2016: $Real GDP per person in 2072: $Net change in real GDP per person between 2016 and 2072: $Year19602016Share of population employed36.4%46.8%which is an increase of% from 2016.

Given,YearAverage labor productivityShare of population employed196047,26336.4%2016110,38446.8%

Answered: The "graying of America" will…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter19: Economic Development

Section: Chapter Questions

Problem 1.1P

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Tis question is not addressed in the chapter—and in fact is still debated amongeconomists—but it is interesting to think about: Why do you suppose growthin living standards was virtually nonexistent for thousands of years? Why didthis situation change in recent centuries?
Assume an economy has grown by 8% per year over the past 20 years. During the same period, the labour force has grown by 2% per year and the quantity of physical capital has grown by 4% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.33%. Assume that human capital has not changed during the past 30 years. What is the growth rate in Physical Capital per worker over this time period? What is the growth rate in output per worker over this time period? How much has technological progress contributed to productivity growth?
A typical U.S. worker today works fewer than 40 hours per week, while in 1890, he or she worked 60 hours per week. Does this difference in the length of work weeks matter in comparing the economic well-being of U.S. workers today with that of 1890? Or can we use the difference between real GDP per capita today and in 1890 to measure differ- ences in economic well-being while ignoring differences in the number of hours worked per week? Briefly explain.
In 2019, the population increases, and labor hours supplied increase by 10 at each real wage rate. What are the equilibrium real wage rate, labor productivity, and potential GDP in 2019? In 2019, the population increases, and labor hours supplied increase by 10 at each real wage rate. Does the standard of living in this economy increase in 2019? Explain why or why not. Suppose the following data describe a nation's population: Year 1 Year 2 Population 300 million 305 million Labor force 150 million 160 million Unemployed 7 million 7.2 million a. What is the unemployment rate in each year? How has the number of unemployed changed from year 1 to year 2 (must give the specific amount of change)? How is this apparent discrepancy between (a) and (b) explained?
Please provide answer in 1 hr
Justify for the correct option
Consider a hypothetical small island nation in which the only industry is weaving. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Physical Capital Labor Force (Looms) (Workers) 300 100 480 120 Year 2035 2036 Based on your calculations, productivity from 2035 to 2036. Physical Capital per Worker (Looms) Labor Hours Imposing a tax on looms (Hours) 4,000 4,200 Suppose you're in charge of establishing economic policy for this small island country. Output (Tapestries) 36,000 50,400 in physical capital per worker from 2035 to 2036 is associated with Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. Labor…
Economic growth around the world The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it was the poorest economy in the table in the year 2010.
A4
This is an extremely simple human capital accumulation problem. Let ℎ? denote human capital of generation ? (i.e., human capital of people born in year ?). Suppose that human capital accumulates as a result of education spending, denoted by ? and measured in 1,000 US dollars. If ? = 30, the total spending is 30,000 US dollars and human capital of this individual is equal to ℎ? = 2√?Suppose that every individual has the same human capital, and output perindividual is ?? = ?ℎ?where ? > 0 is a fixed technology parameter.Find the (long-run) growth rate of ??. Show all your work, and interpret your results.
Economic growth around the world The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it was the poorest economy in the table in the year 2010. The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies. Economy Real Income per Person in 1960 Real Income per Person in 2010 Annual Growth Rate (Dollars) (Dollars) (Percent) Canada 12,946 35,810 2.06 United Kingdom 11,884 32,034 2.00 Korea 1,610 28,702 5.93 Hong Kong 4,518 44,070 4.66 Guatemala 1,985 3,859 1.34 Niger 945 570 -1.01 Indicate which economy…
-1 Consider the production function Y₁ = A₁K¹/2L1/2 where A is total factor productivity (TFP), It is the labour force, and K is physical capital. If the growth rate of capital per worker is 3% per year and the growth rate of output per worker is 3% per year, the growth rate of TFP is? 1.5% per year Unsure, it depends on the growth rate of the labour force 0.5% per year O 1.0% per year

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