if capital became more inportant as an economy grew richer, what would happen to hte capital share of GDP?  Is this what happens to the capital share according to Kaldor?

Q: When capital increases by ΔK units and labor increases by ΔL units, and there is no TFP growth,…

A: Capital and labor are considered to be the important factors of production. Capital means all the…

Q: Let's assume that in a South American country, the nominal GDP went down by 1%, while, the price…

A: GDP is the value of final goods and services produced in the economy in an economic year.

Q: In the flow of capital (M -> C -> M'), who owns the value of M'?

A: Karl Marx is associated with the concept of circuit of capital. According to Marx, capital is a…

Q: where growth in Refer to Figure 11-5. Based on the "catch-up line" drawn above, poorer countries are…

A: Poor countries have low standard of living of the people, wide inequalities, poverty etc  Real GDP…

Q: In year 1, a country has saving rates s = 0.1, productivity A = 2 and depreciation rate d = 0.1. In…

A: By endogenous growth model we typically refer to the AK model, where the production function is…

Q: Consider the following data on the Pakistan economy: Sub-parts to be solved Nominal GDP GDP…

A: Consider the following data on the Pakistan economy: Year                   Nominal GDP(in billions…

Q: compare adam smiths view of a nations wealth with that of modern economists who rely on gross…

A: A capitalist economy is a free market economy where the market forces of demand and supply determine…

Q: (B)(Solow) An economy in which no TFP growth occurs is at steady state. An earthquake occurs…

A: * ANSWER :-  * (B)

Q: Are remittances has a positive or negative correlation with economic growth? If YES, Why? If NO,…

A: Remittance refers to a payment of money that is transferred from one party to another party. in a…

Q: Question 1: In Ghana, the capital share of GDP is about 40 percent, the average growth in output is…

A: We are going to answer this question using basic formulae of Solow Growth model with the assumption…

Q: In his 2020 State of the Nation Address (SoNA), president of South Africa humbly noted... "Even if…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: How GCC countries can avoid negative economic growth?

A: GCC countries will prevent negative growth by growing oil production in order to satisfy the high…

Q: What is gross capital formation reflecting in terms of GDP of a country? What it indicates when the…

A: Gross domestic product is the total market  value of of goods that is produced domestically during…

Q: In macroeconomics, the connection from inputs to outputs forthe entire economy is called…

A: A production function shows the technical relationship between the number of inputs that a firm uses…

Q: What is the Measure of per Capital Real GDP so important? If an economist judges the welfare of the…

A: Per capita real GDP is important because it measures the average income of people.

Q: Are remittances has a positive or negative correlation with economic growth? If YES, Why? If NO,…

A: Remittance is the income which worker settled in aboard send to their families in their home…

Q: How does a fall in the growth rate of technology (g) affect equilibrium capital and consumption in…

A: Ramsey's model is model which is based on a neoclassical model which is made for the economic growth…

Q: What is Harrod's growth model

A: Harrod given his growth model in his book "towards a dynamic equilibrium". The main idea behind his…

Q: Question on Harrod-Domar Growth Model.  Show (complete mathematical solution) how the net savings…

A: Economic growth: When there is an increment in the generation of output is taking place then it will…

Q: In 2019 a country has 7.48% growth in real gdp, and uses two factors of production: capital (K) and…

A: Assume the share of capital in production is 40% and share of labor in production is 60% Production…

Q: Institutions are important to a country's prosperity because institutions affect Select one: O a the…

A: An institution is an established organization to monitor the working of the country, to monitor how…

Q: A country has a Cobb-Douglas production function given by: Y = AK0.10.3 If total factor productivity…

A: Total factor productivity (TFP) is a measure of productivity

Q: e government can't only choose increasing either education or health expenditure in order for…

A: Education and healthcare are two pillars of human development in any country.…

Q: What are the possible sources of capital

A: In an economy, there is huge differences in the activities of small businesses and large businesses…

Q: Refer to the figure below and assume that the values for points a, b, and c (the combined value of…

A: a) At point a the total value in economy is $20 billion while at b it is $40 billion.  The growth…

Q: Two students are discussing the pros and cons of different measures of economic development.  “GDP…

A: The productivity of a nation's workforce gives an idea of the amount of output produced with the…

Q: A country has a Cobb-Douglas production function given by: Y = AK0.5H0.1 If total factor…

A: Since you have posted multiple questions, we will solve the first question for you. If you want any…

Q: A country has a Cobb-Douglas production function given by: Y = AK0.5 0.3 If total factor…

A: Since you have asked multiple questions, we will solve first question you. If you want any other…

Q: In year 1, a country has saving rates, s=0.1, productivity a=2 and depreciation rate d=0.1 . In year…

A: The endogenous growth model has persistent growth is led by saving and investment. Therefore, there…

Q: In Ghana, the capital share of GDP is about 40 percent, the average growth in output is about 2…

A: An economy is in a steady state when its variable remains unchanged with the flow of time. The…

Q: If GDP is $20 trillion, how many years will it take for GDP to increase to $160 trillion if annual…

A: GDP=20 trillion Annual growth rate=10% Therefore 160*10/100=16

Q: Suppose the 50% of the income generated by an economy is paid to workers, thus implying that the…

A: Given: Income paid to workers=50% Income paid to capital=50% Growth in GDP=4% Growth in capital=1%…

Q: Suppose that work hours in New Zombie are 200 in year 1 and productivity is $12 per hour worked.…

A: As it is given  New zombie work hour =200 ( year) productivity per hour =$ 12

Q: In Ghana, the capital share of GDP is about 40 percent, the average growth in output is about 2…

A: Given Information GDP Production function is Cobb-Douglas when the capital's share of income is α =…

Q: E3

A: An economic system is a way for societies or governments to organise and distribute available…

Q: The majority of the countries have saving rates that are below the golden rule level. Why is it…

A: The per capita capital is the ratio of total capital to output. It means the rise in output results…

Q: A country has a Cobb-Douglas production function given by: Y = AK0.5H0.3 If total factor…

A: Answer: (1). Given, Production function: Y=AK0.5H0.3 Total factor productivity (A) = 40 Human…

Q: How come higher saving leads to more rapid growth?

A: The higher savings means the resources and incomes of the nationals has been used in consumption at…

Q: Let’s think about two countries, Frugal and Smart. In Frugal, people devote 50% of GDP to making new…

A: Investments are defined as assets bought or invested in with the goal of increasing wealth and…

Q: Suppose that work hours in New Zombie are 300 in year 1, and productivity is $10 per hour worked.…

A: Real GDP: - it is the inflation-adjusted value of all final goods and services produced in any…

Q: Refer to the figure below and assume that the combined consumer goods+ capital goods value for point…

A: Economic Growth: It refers to the increase in the quantity of goods and services produced per head…

Q: Because capital is subject to diminishing returns,higher saving and investment do not lead to…

A: Diminishing returns depicts that going beyond an optimal unit will lead to fall in productivity of…