Suppose labor share GDP is 70 % and the capital's is 30 % , total factor productivity is growing at an annual rate of 2 % , the labor force is growing at a rate of 1 % and the capital stock is growing at a rate of 4 % Calculate the annual growth rate of real GDP.

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A young woman plans to retire early in 25 years. She believes she can save $10,000 each year starting now. If she plans to begin withdrawing money one year after she makes her last payment into the retirement account (i.e., in the 26th year), what uniform amount could she withdraw each year for 30 years, if the account earns an interest rate of 8% per year? a) Correctly plot the cash flow diagram with its respective vectors, arrowheads, units, and currency values. b) Correct mathematical approach and development, use of compound interest factors.c) Financial logic in the development of the exercise and application of the concept of time value of money. d) Final numerical answer and writing in prose with a minimum of 20 words and a maximum of 50 words of the obtained numerical interpretation.

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Chapter 16, Problem 5E

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Suppose labor share GDP is 70% and the capital's is 30%, total factor productivity is growing at an annual rate of 2%, the labor force is growing at a rate of 1% and the capital stock is growing at a rate of 4%

Calculate the annual growth rate of real GDP.

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