Tubo Akangbou

Concepts of Macroeconomics

Spring 2014

HW3

1) If a region has hundred buck billion of real GDP today, what is going to be their real GROSS DOMESTIC PRODUCT in 50 years if it develops at an gross annual growth price of (3 Points)

a. 1 . 5 percent

(вЂ‹

100 Billion)(1+. 014)^50 sama dengan 200. four Billion

b. 2 . almost eight percent

(вЂ‹

100 Billion)(1+. 028)^50 sama dengan 397. 79 Billion

c. 7 percent

(вЂ‹

100 Billion)(1+. 07)^50 = 2 . 9457 Trillion

d.

2) What is the between labor and individual capital? How can human capital be improved? ( two points)

Labor Capital every worker may be the stock of equipment and constructions that are used to create goods and services when Human Capital per member of staff is the economist term intended for the knowledge and skills that workers acquire through education, training, and experience. Man Capital could be increased simply by Encouraging education and teaching. 3) What does growth price of GDP measure? Would you rather live in a land with a dangerous of GDP and low growth charge or in a nation with a low-level of GROSS DOMESTIC PRODUCT and an increased growth charge? Explain your answer. (4 Points)

Development Rate of GDP measures how speedily real GDP per person grew in the normal year. I would rather stay in a nation with a high level of GROSS DOMESTIC PRODUCT and low growth rate because I understand if I occupied a low level GDP region with a high growth level the growth level would be challenging to maintain after some time. So the better choice would be the high level of GDP and low expansion rate.

4) Form the BLS website, plot the twelve-monthly labor efficiency (output per hour) pertaining to the U. S. via 1947-2013 in excel. Precisely the general pattern in labor productivity with time? How would you interpret labor productivity data in a particular year? (6 Points) The overall trend in labor production

has been increasing over time. If perhaps in the

basic year of 2009 a normal worker

developed 100 dollars the same person

in a several year would only produce

the value the chart says.