In: Economics

At the beginning of 2018, the aggregate output in Atlantis was $15 billion and the population was 3 million. During 2018, aggregate output rose by 3.5%, the population rose by 2.5%, and the aggregate price level remained constant. For all calculations, calculate to 2 decimal places.

a) What was the aggregate output per capita in Atlantis at the beginning of 2018?

b) What was aggregate output in Atlantis at the end of 2018?

c) What was the population in Atlantis at the end of 2018?

d) What was aggregate output per capita in Atlantis at the end of 2018?

e) What was the annual growth rate of per capita output in Atlantis during 2018?

(a)

Aggregate output at the beginning of 2018 = $15 billion

Population at the beginning of 2018 = 3 million

Calculate the aggregate output per capita at the beginning of 2018 -

Aggregate output per capita = Aggregate output at the beginning of 2018/Population at the beginning of 2018

Aggregate output per capita = $15 billion/3 million = $5,000

**The aggregate output per
capita in Atlantis at the beginning of 2018 was
$5,000.**

(b)

Aggregate output at the beginning = $15 billion

Growth rate of output = 3.5% or 0.035

Calculate the aggregate output at the end -

Aggregate output at the end = $15 billion + ($15 billion * 0.035) = $15 billion + $0.525 billion = $15.525 billion

**The aggregate output in
Atlantis at the end of 2018 was $15.525 billion.**

(c)

Population at the beginning = 3 million

Growth rate of population = 2.5% or 0.025

Calculate the population at the end -

Population at the end = 3 million + (3 million * 0.025) = 3 million + 0.075 million = 3.075 million

**The population in Atlantis
at the end of 2018 was 3.075 million.**

(d)

Aggregate output at the end = $15.525 billion

Population at the end = 3.075 million

Calculate the aggregate output per capita at the end -

Aggregate output per capita = Aggregate output at the beginning of 2018/Population at the beginning of 2018

Aggregate output per capita = $15.525 billion/3.075 million = $5,048.78

**The aggregate output per
capita in Atlantis at the end of 2018 was $5,048.78**

(e)

Aggregate outut per capita at the beginning = $5,000

Aggregate output per capita at the end = $5,048.78

Calculate the annual growth rate of per capita output -

Annual growth rate = [($5,048.78 - $5,000)/$5,000] * 100 = 0.97%

**The annual growth rate of
per capita output in Atlantis during 2018 was 0.97%**

Suppose output is $35 billion, government purchases are $10
billion, consumption is $15 billion,
and net exports are $8 billion. Assume net factor payments equal
0.
(a) Calculate the equilibrium amount of investment for this
economy. Show your work.
(b) Calculate the equilibrium amount of absorption for this
economy. Show your work.
(c) Calculate the equilibrium amount of the financial account
balance for this economy.
Show your work.
(d) Given the value you found for the financial account balance, do...

Australia’s real GDP was $A1,730 billion in 2017 and $A1,782
billion in 2018. Australia’s population was 24.6 million in 2017
and 25.0 million in 2018. Calculate
The growth rate of real GDP.
The growth rate of real GDP per person.
The approximate number of years it will take for real GDP per
person in Australia to double if the current real GDP growth rate
and population growth rate are maintained.

If velocity (V) and aggregate output (Y) remain constant at
$4 and $1,250 billion, respectively, what happens to the price
level (P) if the money supply (M) declines from $475 billion to
$375 billion?

If velocity (V) and aggregate output (Y) remain constant
at
$5
and
$1,250
billion,
respectively, what happens to the price level (P) if the money
supply (M) declines from
$425
billion to
$325
billion?
Originally, the price level is
nothing.
(Round
your response to two decimal places.)
After the money supply decreases, the price level is

Explain the Keynesian framework for aspect of aggregate output
and aggregate demand

what would it take for aggregate output to always be absorbed by
aggregate demand, so that overproduction will never be a problem?
Does the "invisible hand" constitute reasonable metaphor for
describing the behavior of economies?

A Population Model The population of the world in 2013
was 7.13 billion people and was growing at a rate of 1.1% per
year. Assuming that this growth rate continues, the model
P(t) = 7.1311.0112^(t-2013) represents the population P (in
billions of people) in year t.
(a) According to this model, when will the population of the
world be 10 billion people?
(b) According to this model, when will the population of the
world be 12.2 billion people?

2016
2017
2016
2017
Real GDP
$144 billion
$157 billion
$396 billion
$430 billion
Population
59.4 million
60.2 million
44.4 million
44.8 million
a. Compute the GDP per capita for each country X and Y for both
years 2016 and 2017
b. Which population was better off in 2016? 2017?
c. Compute the rate of growth of GDP per capita between 2016 and
2017. Which country showed the greatest progress?

Suppose the Australia Bureau of statistics reported in May 2018
that the population age 15 years to 65 years in Australia comprised
the following categories: 14 million employed; 900,000 unemployed
and the total population was 19 million.
1) What was Australia’s labour force that was not employed
2017
2) Calculate Australia’s population not included in labour
force
3) Calculate Australia’s unemployment rate
4) Define demand pull inflation

Population growth: Suppose the world population today is 7
billion, and suppose this population grows at a constant rate of 3%
per year from now on. (This rate is almost certainly much faster
than the future population growth rate; the high rate used here is
useful for pedagogy. If you like, you can use a spreadsheet program
to help you with this question.)
What would the population equal 100 years from now?
Compute the level of the population for t...

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