KW_Macro_Ch_08_End_of_Chapter_Problems

# KW_Macro_Ch_08_End_of_Chapter_Problems - chapter 8 >...

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>> Long-Run Economic Growth chapter 8 1. The table on the following page shows data from the Penn World Table, Version 6.1, for real GDP per capita in (1996 U.S. dollars) for Argentina, Ghana, South Korea, and the United States for 1960, 1970, 1980, 1990, and 2000. a. Complete the table by expressing each year’s real GDP per capita as a percentage of its 1960 and 2000 levels. b. How does the growth in living standards from 1960 to 2000 compare across these four nations? What might account for these differences? PROBLEMS

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2. The accompanying table shows the average annual growth rate in real GDP per capita for Argentina, Ghana, and South Korea using data from the Penn World Table, Version 6.1, for the past few decades. a. For each decade and for each country, use the Rule of 70 to calculate how long it would take for that country’s real GDP per capita to double. b. Suppose that the average annual growth rate that each country achieved over the period 1990–2000 continues indefinitely into the future. Starting from 2000, use the Rule of 70 to calculate, where possible, the year in which a country will have doubled its real GDP per capita. Average annual growth rate of real GDP per capita Years Argentina Ghana South Korea 1960–1970 2.24% 4.36% 5.86% 1970–1980 1.35 0.57 5.69 1980–1990 3.70 0.18 7.51 1990–2000 4.27 1.33 4.78 2 CHAPTER 8 PROBLEMS 1960 real GDP per capita 2000 real GDP per capita Real GDP per capita (1996 dollars) 1960 \$7,395 \$832 \$1,571 \$12,414 1970 9,227 1,275 2,777 16,488 1980 10,556 1,204 4,830 21,337 1990 7,237 1,183 9,959 26,470 2000 10,995 1,349 15,881 33,308 Year Percentage of 1960 real GDP
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## This note was uploaded on 04/10/2008 for the course ECONOMICS 103 taught by Professor Sheflin during the Spring '08 term at Rutgers.

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KW_Macro_Ch_08_End_of_Chapter_Problems - chapter 8 >...

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