Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 23, Problem 21APA
To determine
Explain which growth theory best describes the given news clip.
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Long-run Economic Growth - End of Chapter Problems
8. Over the next 100 years, real GDP per capita in Groland is expected to grow at an average annual rate of 2.0%. In
Sloland, however, growth is expected to be somewhat slower, at an average annual growth rate of 1.5%. If both countries
have a real GDP per capita today of $20,000, how will their real GDP per capita differ in 100 years? Round all answers to
two places after the decimal point.
Groland's real per capita GDP will be $|
in 100 years.
Sloland's real per capita GDP will be $
in 100 years.
In 100
years,
Sloland's real
per capita GDP will be
61.18
% of Groland's.
Fill in the blank
Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000.
How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?
India's per-capita GDP must double ________________________ times.
Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate.
Economic Growth – End of Chapter Problem
One analyst predicts that self-driving cars will ultimately reduce the number of cars that are produced. She argues that
because self-driving cars can drive other people rather than sitting in people's driveways and garages, the United States will
need to produce fewer cars. She argues that growth will slow because we are producing a decreasing number of cars each
year. Do you agree? Why or why not?
Producing fewer cars, everything else equal, will
economic growth. However, the resources no longer used
to produce cars
be used to produce other items. Furthermore, the self-driving cars could
opportunities for new businesses, which would have the
effect. Therefore, the ultimate impact self-driving
cars would have on economic growth is
Chapter 23 Solutions
Macroeconomics
Ch. 23.1 - Prob. 1RQCh. 23.1 - Prob. 2RQCh. 23.1 - Prob. 3RQCh. 23.2 - Prob. 1RQCh. 23.2 - Prob. 2RQCh. 23.2 - Prob. 3RQCh. 23.3 - Prob. 1RQCh. 23.3 - Prob. 2RQCh. 23.3 - Prob. 3RQCh. 23.3 - Prob. 4RQ
Ch. 23.3 - Prob. 5RQCh. 23.3 - Prob. 6RQCh. 23.4 - Prob. 1RQCh. 23.4 - Prob. 2RQCh. 23.4 - Prob. 3RQCh. 23.5 - Prob. 1RQCh. 23.5 - Prob. 2RQCh. 23.5 - Prob. 3RQCh. 23 - Prob. 1SPACh. 23 - Prob. 2SPACh. 23 - Prob. 3SPACh. 23 - Prob. 4SPACh. 23 - Prob. 5SPACh. 23 - Prob. 6SPACh. 23 - Prob. 7SPACh. 23 - Prob. 8SPACh. 23 - Prob. 9APACh. 23 - Prob. 10APACh. 23 - Prob. 11APACh. 23 - Prob. 12APACh. 23 - Prob. 13APACh. 23 - Prob. 14APACh. 23 - Prob. 15APACh. 23 - Prob. 16APACh. 23 - Prob. 17APACh. 23 - Prob. 18APACh. 23 - Prob. 19APACh. 23 - Prob. 20APACh. 23 - Prob. 21APACh. 23 - Prob. 22APACh. 23 - Prob. 23APACh. 23 - Prob. 24APACh. 23 - Prob. 25APA
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- Fill in the second blank. Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000. How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP? India's per-capita GDP must double __________ times. Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate. Doubling time: ______________________ yearsarrow_forwardDiscuss China's Economic growth of 5.2% last year and how their population decrease can negatively effect their economy.arrow_forwardChina's economic development has been an unprecedented growth miracle in recent human history. Över the four decades since opening up, China has transformed from a poor and backward economy to a prosperous and modern one. Indeed, for much of its growth history, China rode on the waves of globalisation, international trade, and foreign investment. However, recent global events, such as the Sino-American trade war and the Covid-19, have threatened China's centrality in the global economic order. Analyse these two (2) calamitous events and explain how each of these events has threatened China's overall position and standing in the global economy. Provide relevant examples.arrow_forward
- Fill in the third blank. Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000. How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP? India's per-capita GDP must double __________ times. Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate. Doubling time: ______________________ years How many years will it take for India to reach Italy’s current level of GDP per capita? It will take ________________ years for India to reach Italy's current level of GDP per capita.arrow_forwardWhat has been the average annual growth rate of U.S. real GDP per person over the 120 years from 1900 to 2020? In which decade, beginning with the 1960s, was the growth of potential GDP per person greatest and slowest? Over the 120 years from 1900 to 2020, the average annual growth rate of U.S. real GDP per person is enter your response here percent.arrow_forwardSuppose that India is currently growing at a rate of 14% per year and is producing real GDP per capita equal to $7,000, whereas the United States is currently growing at a rate of 5% per year and is producing real GDP per capita equal to $28,000.a) How long will it take India to double its real GDP per capita?b) How long will it take the United States to double its real GDP per capita?c) How much will India's real GDP per capita be in 20 years?d) How much will the USA's real GDP per capita be in 14 years?arrow_forward
- Country alpha and beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 10 percent. In 14 years, Country Beta's GDP will be approximately that of Country Alpha one-half double quadruple one-fourtharrow_forwardConsider the following table displaying annual growth rates for nations X, Y, and Z, each of which entered 2020 with real per capita GDP equal to $20,000. Country X Y Z 2020 7 4 5 Annual Growth Rate (%) 2021 1 5 4 2022 3 7 3 2023 492 a. The nation that most likely experienced a sizable earthquake in late 2020 that destroyed a significant portion of its stock of capital goods, but was followed by speedy investments in rebuilding the nation's capital stock, is Y Calculate this nation's per capita real GDP at the end of 2023. $ (Enter your response rounded to the nearest dollar.)arrow_forwardIdentify THREE public policies that can stimulate employment and facilitate economic growth in an economy. Use examples to clearly illustrate how EACH policy can stimulate employment and facilitate economic growth in your countryarrow_forward
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