Tosha Collins BU204-16 Unit 2 Assignment 5/23/10 Chapter 8 7) Physical capital, human capital, technology, and natural resources are vital roles in long-run growth in real GDP per capita. Increases in physical capital and human capital help labor forces to produce more over time. Economic studies suggest that increases in human capital may help to explain increases in productivity more so than the increases in physical capital per worker. Technological progress seems to be the most important driver of productivity growth. Natural resources plays a major role in determining productivity, but plays a less important role in increasing productivity in human or physical capital in most countries today. 9) If GDP per capita in Groland grows at an annual rate of 2.0% on average, real GDP per capita in 100 years will be $144,893 [$20,000 x (1 +0.02) 100 ]. At an average annual rate of growth of 1.5%, real GDP per capita in Sloland in 100 years will be $88,641 [$20,000 x (1 + 0.015) 100 ]. Even though both places start with the same real
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This note was uploaded on 06/10/2010 for the course BU 204 BU 204-16 taught by Professor Biasca during the Spring '10 term at Kaplan University.