To know: Three sources of economic growth and way to derive growth accounting approach.

Question

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Answer 1

Question

Chapter 6, Problem 1RQ

To determine

To know:Three sources of economic growth and way to derive growth accounting approach.

Expert Solution & Answer

Explanation of Solution

According to the growth accounting approach, the three sources of economic growth are productivity, increased capital inputs and increased labor inputs. These three are the sources which increase productivity of economy.

As productivity increased, it leads to growth in output, thereby leading to economic growth.

As capital input increased, it leads to increase in productivity, thereby increasing economic growth.

Due to increase in labor inputs, output increases, thereby economic growth is increased.

The growth account approach is derived from the production function, which measures the relatioship between output and the three inputs: capital, labor and productivity. If the three inputs are constant, output will be constant.

Economics Concept Introduction

Introduction:

Economic growth is the term which is measured by increase in gross domestic product. More the GDP, more is the economic growth

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Students have asked these similar questions

Which of the following two countries A and B ceteris paribus do you expect to have the higher steady-state level of GDP per capita? Moreover, which country do you expect to grow faster? For this, you may assume that both countries will initially start their growth paths below their corresponding steady states. a) The two countries have initially the same levels of GDP per capita but country A has a higher savings rate . b) The two countries have initially the same levels of GDP per capita but population in country A grows at a rate of 10% while in country B population grows at a rate of 8%. c) The two countries have initially the same levels of GDP per capita but the average educational attainment of workers in country A is about 1.2 times higher than in country B.

Write down the growth accounting equation. Explain each component briefly.

May I know why the endogenous growth model that represents standard of living and economic growth is drew in a straight line? Why it is a straight line?

Answer 2

Question

Chapter 6, Problem 1RQ

To determine

To know:Three sources of economic growth and way to derive growth accounting approach.

Expert Solution & Answer

Explanation of Solution

According to the growth accounting approach, the three sources of economic growth are productivity, increased capital inputs and increased labor inputs. These three are the sources which increase productivity of economy.

As productivity increased, it leads to growth in output, thereby leading to economic growth.

As capital input increased, it leads to increase in productivity, thereby increasing economic growth.

Due to increase in labor inputs, output increases, thereby economic growth is increased.

The growth account approach is derived from the production function, which measures the relatioship between output and the three inputs: capital, labor and productivity. If the three inputs are constant, output will be constant.

Economics Concept Introduction

Introduction:

Economic growth is the term which is measured by increase in gross domestic product. More the GDP, more is the economic growth

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1RQ

To determine

To know:Three sources of economic growth and way to derive growth accounting approach.

Expert Solution & Answer

Explanation of Solution

According to the growth accounting approach, the three sources of economic growth are productivity, increased capital inputs and increased labor inputs. These three are the sources which increase productivity of economy.

As productivity increased, it leads to growth in output, thereby leading to economic growth.

As capital input increased, it leads to increase in productivity, thereby increasing economic growth.

Due to increase in labor inputs, output increases, thereby economic growth is increased.

The growth account approach is derived from the production function, which measures the relatioship between output and the three inputs: capital, labor and productivity. If the three inputs are constant, output will be constant.

Economics Concept Introduction

Introduction:

Economic growth is the term which is measured by increase in gross domestic product. More the GDP, more is the economic growth

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1RQ

To determine

To know:Three sources of economic growth and way to derive growth accounting approach.

Expert Solution & Answer

Explanation of Solution

According to the growth accounting approach, the three sources of economic growth are productivity, increased capital inputs and increased labor inputs. These three are the sources which increase productivity of economy.

As productivity increased, it leads to growth in output, thereby leading to economic growth.

As capital input increased, it leads to increase in productivity, thereby increasing economic growth.

Due to increase in labor inputs, output increases, thereby economic growth is increased.

The growth account approach is derived from the production function, which measures the relatioship between output and the three inputs: capital, labor and productivity. If the three inputs are constant, output will be constant.

Economics Concept Introduction

Introduction:

Economic growth is the term which is measured by increase in gross domestic product. More the GDP, more is the economic growth

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1RQ

To determine

To know:Three sources of economic growth and way to derive growth accounting approach.

Expert Solution & Answer

Explanation of Solution

According to the growth accounting approach, the three sources of economic growth are productivity, increased capital inputs and increased labor inputs. These three are the sources which increase productivity of economy.

As productivity increased, it leads to growth in output, thereby leading to economic growth.

As capital input increased, it leads to increase in productivity, thereby increasing economic growth.

Due to increase in labor inputs, output increases, thereby economic growth is increased.

The growth account approach is derived from the production function, which measures the relatioship between output and the three inputs: capital, labor and productivity. If the three inputs are constant, output will be constant.

Economics Concept Introduction

Introduction:

Economic growth is the term which is measured by increase in gross domestic product. More the GDP, more is the economic growth

Answer 6

Chapter 6, Problem 1RQ

To determine

To know:Three sources of economic growth and way to derive growth accounting approach.

Expert Solution & Answer

Explanation of Solution

According to the growth accounting approach, the three sources of economic growth are productivity, increased capital inputs and increased labor inputs. These three are the sources which increase productivity of economy.

As productivity increased, it leads to growth in output, thereby leading to economic growth.

As capital input increased, it leads to increase in productivity, thereby increasing economic growth.

Due to increase in labor inputs, output increases, thereby economic growth is increased.

The growth account approach is derived from the production function, which measures the relatioship between output and the three inputs: capital, labor and productivity. If the three inputs are constant, output will be constant.

Economics Concept Introduction

Introduction:

Economic growth is the term which is measured by increase in gross domestic product. More the GDP, more is the economic growth

Answer 7

Chapter 6, Problem 1RQ

To determine

To know:Three sources of economic growth and way to derive growth accounting approach.

Answer 8

Expert Solution & Answer

Explanation of Solution

According to the growth accounting approach, the three sources of economic growth are productivity, increased capital inputs and increased labor inputs. These three are the sources which increase productivity of economy.

As productivity increased, it leads to growth in output, thereby leading to economic growth.

As capital input increased, it leads to increase in productivity, thereby increasing economic growth.

Due to increase in labor inputs, output increases, thereby economic growth is increased.

The growth account approach is derived from the production function, which measures the relatioship between output and the three inputs: capital, labor and productivity. If the three inputs are constant, output will be constant.