The following table shows levels of real income per person in several economies during the years 1960 and 2010. The table further shows the averageannual growth rate for each economy over this time period. For instance, real income per person in Niger was $945 in 1960, and it actuallydeclined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it featured the lowest level of real income perperson of any economy listed in the table in the year 2010.The levels of real income per person are reported in U.S. dollars using a base year of 2005. The following exercises will provide insight into thedifferent growth experiences of these nations.EconomyCanadaUnited KingdomKoreaHong KongGuatemalaNigerIndicate which economy satisfies each of the following statements.StatementThis economy experienced the fastest rate of growth in real incomeper person from 1960 to 2010.Real Income per Person in 1960 Real Income per Person in 2010(Dollars)(Dollars)12,94635,81011,88432,0341,61028,7024,51844,0701,9853,859945570This economy had the highest level of real income per person in theyear 2010.O CanadaO GuatemalaO Hong KongKoreaCanadaOGuatemalaAnnual Growth Rate(Percent)2.062.005.934.661.34-1.01HongKongKorea NigerOConsider the following four nations listed below. Which economy started 1960 with a level of real income per person of well below that of the UnitedKingdom and grew fast enough to catch up with and surpass the United Kingdom's real income per person by 2010?UnitedKingdomO

The annual growth rate in economics refers to the percentage increase in an economic variable, such…

Answered: The following table shows levels of…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Productivity And Growth

Section: Chapter Questions

Problem 2.4P

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The following table reports real GDP per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real GDP per person in the Central African Republic was $1,010 in 1960, and it actually declined to $628 by 2010. The Central African Republic's average annual growth rate during this period was -0.95%, and it was the poorest economy in the table in the year 2010. The real GDP-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies.
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.
The following table shows levels of real income per person in several economies during the years 1960 and 2010. The table further shows the average annual growth rate for each economy over this time period. For instance, real income per person in Senegal was $1,567 in 1960, and it actually declined to $1,480 by 2010. Senegal's average annual growth rate during this period was -0.11%, and it featured the lowest level of real income per person of any economy listed in the table in the year 2010. The levels of real income per person are reported in U.S. dollars using a base year of 2005. The following exercises will provide insight into the different growth experiences of these nations. Questions: 1. This economy experienced the fastest rate of growth in real income per person from 1960 to 2010. a. Austria b. China c. France d. India e. Senegal f. Singapore 2. This economy had the highest level of real income per person in the year 2010. a. Austria b. China c. France d. India e.…
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.
Assume that the growth rate of the capital stock in each period is determined by the level of output in the previous period. 1) An economy of 80 million people has ten percent of them engaged in research and development, where their productivity is 0.0035. The economy is on a balanced growth path, when suddenly 2.88 million people move from goods production into R&D, raising the fraction there to 13.6 percent. In the one period that begins with this labor reallocation, the growth rate of output is ________. [Refer to the instruction above.] A) 2.8% B) 0.0% C) 3.8% D) 2.2%
Which of the following two countries A and B ceteris paribus do you expect to have the higher steady-state level of GDP per capita? Moreover, which country do you expect to grow faster? For this, you may assume that both countries will initially start their growth paths below their corresponding steady states. a) The two countries have initially the same levels of GDP per capita but country A has a higher savings rate . b) The two countries have initially the same levels of GDP per capita but population in country A grows at a rate of 10% while in country B population grows at a rate of 8%. c) The two countries have initially the same levels of GDP per capita but the average educational attainment of workers in country A is about 1.2 times higher than in country B.
What will happen to the annual rate of growth of per capita real Gross Domestic Product (GDP) if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?
Consider two distinct countries, denoted as A and B. Initially, Country A had a per capita GDP of $10,000 and experienced a growth rate of 10%, while Country B had a per capita GDP of $40,000 and experienced a growth rate of 2%. Assuming that the growth rates remain unchanged, which country will have a higher per capita GDP when t = 35 time periods (years)? O Country B O Country A O All of these choices are correct. They are the same
The following figure shows that the average growth rate of real per capita GDP is negatively related to the initial level of real per-capita GDP. Average real per capita growth (5) 4.50 4.00 3.50 3.00 2.50 ||US -2.11 1.50 1.00 0.50 0.00 PHI O Dein HA 02.000 6,000 10,000 14,000 Real income per capita, 1950 Per capita growth 1950-2007 for 22 OECD countries What can we conclude from the above Figure? Because of the diminishing returns to capital accumulation, we should see tendencies for unconditional convergence between poor and rich countries. Divergence between countries is expected if we make conditions on key variables such as population growth rates and savings rates. If countries have similar features such as population growth rates and saving rates, then conditional convergence may occur The OECD countries are homogeneous Richer is the country, faster is its growth rate
What must be the relationship between the rate of growth of technological change (g) and the population growth rate (L/L) for income per capita to continue to increase?
What 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.
In 1960, per-capita GDP in Japan was 1/3 of that in the UK. By 1990, Japan and the UK had equal GDP per capita. From 1960 to 1990, the UK per-capita GDP grew at an average rate of 2.2% per year. Calculate the average annual growth rate of per- capita GDP in Japan over the same time period.

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