Macroeconomics
Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
Question
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Chapter 9, Problem 1QQ
To determine

The output per person.

Expert Solution & Answer
Check Mark

Answer to Problem 1QQ

Option (c) is the correct answer.

Explanation of Solution

Option (c):

When the rate of population growth is 1 percent, the rate of technological progress is 3 percent, the depreciation is 5 percent and the saving rate is 10 percent, the output per person would grow at 3 percent. Thus, option (c) is correct.

Option (a):

When the rate of population growth is 1 percent, the rate of technological progress is 3 percent, the depreciation is 5 percent and the saving rate is 10 percent, the output per person will not grow at 1 percent. Thus, option (a) is incorrect.

Option (b ):

When the rate of population growth is 1 percent, the rate of technological progress is 3 percent, the depreciation is 5 percent and the saving rate is 10 percent, the output per person will not grow at 2 percent. Thus, option (b) is incorrect.

Option (d):

When the rate of population growth is 1 percent, the rate of technological progress is 3 percent, the depreciation is 5 percent and the saving rate is 10 percent, the output per person will not grow at 4 percent. Thus option (d) is incorrect.

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