If the share of GDP used for capital goods is 0.12, the growth rate of productivity...

If the share of GDP used for capital goods is 0.12, the growth rate of productivity is 0.01, the growth rate of population is 0.03, the depreciation rate is 0.06, the initial capital/output ratio is 2.85, and the elasticity of GDP with respect to capital is 0.3, then what is the growth rate of the GDP per capita? Use three decimal places.

Expert Solution

Rahul Sunny answered 2 years ago

If the share of GDP used for capital goods is 0.02, the growth rate of productivity...

If the share of GDP used for capital goods is 0.02, the growth rate of productivity is 0, the growth rate of population is 0.03, the depreciation rate is 0.07, the initial capital/output ratio is 3.67, and the elasticity of GDP with respect to capital is 0.1, then what is the growth rate of the capital/output ratio? Use 2 decimal places.

If the share of GDP used for capital goods is 0.28, the growth rate of productivity...

If the share of GDP used for capital goods is 0.28, the growth rate of productivity is 0.03, the growth rate of population is 0, the depreciation rate is 0.06, the initial capital/output ratio is 0.88, and the elasticity of GDP with respect to capital is 0.1, then what is the growth rate of the GDP per capita? Use 2 decimal places.

Show how growth rate of GDP per capita is related to the growth rate of GDP...

Show how growth rate of GDP per capita is related to the growth rate of GDP per worker and growth rate of working-age fraction of population. How does the effect of population redistribution reduce the average growth rate of income in the world? Explain this (composition effect) by providing examples.

(a) Explain how the following changes will affect the total employment, average wage rate, labor productivity, and growth rate of the GDP of an economy.

(a) Explain how the following changes will affect the total employment, average wage rate, labor productivity, and growth rate of the GDP of an economy. (i) An increase in the labor force participation rate (ii) Growth in capital per worker accompanied by technological change Which of the above changes would contribute more toward a sustained high economic growth rate of an economy in the long run? (b) Suggest three government policies that can be used to raise the...

What is the current GDP growth rate? Also, examine the trend of GDP growth over the...

What is the current GDP growth rate? Also, examine the trend of GDP growth over the past few years. What stage of the business cycle is the U.S. economy currently in given the trend of GDP growth? What components of GDP tend to decline significantly during recessions (particularly during the 2008 recession), and what GDP components rise during expansion? In other words, what aspects of GDP are mostly affected when the economy slows down, and why?

8. Capital goods are treated as _ goods and, therefore, _ GDP. A. final; included in...

8. Capital goods are treated as _______ goods and, therefore, _______ GDP. A. final; included in B. final; excluded from C. intermediate; included in D. intermediate; excluded from 9. Which of the following transactions would be included in the GDP of the United States? A. Coca Cola produces soft drinks in England. B. Honda produces cars in Ohio. C. McDonalds sells hamburgers in Russia. D. Ford Motors produces cars in Mexico 10. In the year 2006, Pete Rich purchases a painting...

Assume the population growth rate is 2 percent and thereal GDP growth rate is 5...

Assume the population growth rate is 2 percent and the real GDP growth rate is 5 percent. The change in standard of living, as measured by the growth rate in real GDP per person, isA) 7 percent.B) 2.5 percent.C) 5 percent.D) 3 percent.E) -3 percent.

4. What is the difference between the growth rate of nominal GDP, growth rate of real...

4. What is the difference between the growth rate of nominal GDP, growth rate of real GDP and growth rate of real GDP per capita? What are the determinants of the last one? Find out the growth rate of U.S. Real GDP per capita for 1980-2019 and plot them into a graph.

The rate of growth of nominal GDP is 10 percent. The rate of inflation rate is...

The rate of growth of nominal GDP is 10 percent. The rate of inflation rate is 5 percent. The rate of growth of the population is 1%. What is the rate of growth or real GDP per capita? (b) What is the problem with using GDP (and GDP per capita) as a measure of economic performance and welfare?

Identify and discuss the factors determining the rate of productivity growth in Australia.

Question