You likely know that this year’s THON raised more than last year’s. To be precise, in February, 2016 $9,770,332 was raised and in February, 2017 $10,045,478 was. But, in real terms (that is, adjusting for consumer prices), was it still an increase? You can find other data you need at one of these websites: http://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/ (Links to an external site.) or http://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/ADVEC/WEOWORLD/USA (Links to an external site.). Please show your work and explain your calculations. Hint: You’ll find that you can’t find the data you need for February, 2017 but some is quite close in time. Please use that data.
Flag this QuestionQuestion 22pts
| year: |
2017 |
2067 |
| K/L: |
$100,000 |
$200,000 |
| Y/L: |
$90,000 |
$180,000 |
| L/pop: |
0.50 |
0.50 |
Looking to the next 50 years, let’s say that the above table describes some key variables for an economy (the symbols were defined in class). Please answer the following questions and show your work.
a. What is the average annual growth rate of this economy?
b. What is the major cause of this growth, more capital per worker or better technology? Hints: First, you’ll need to compute A (Total Factor Productivity, which measures technology) for both years. Second, in class we looked at the major cause of growth for the U.S. since 1961 and you should use the same procedure here. We had a rather detailed graph and calculations that showed how to determine the answer to this question.
Flag this QuestionQuestion 32pts
During the campaign, President Trump has proposed policies the he says will lead to economic growth of 4% a year. Do you think that most people would notice this? Hint: think about how quickly the U.S. economy has grown on average since 1865 (done in class and on a worksheet) and how you compute the time for something to double in size. Be sure to show your work.
Flag this Question In our “Macroeconomics Supplement” please read “Making It in America” by Adam Davidson. You might note that this title has two meanings: manufacturing in the U.S. as well as getting ahead economically. We’ll use this for the next two questions.
Flag this QuestionQuestion 42pts Please explain all the factors that are causing the per-worker production function, as applied to U.S. manufacturing, to shift up. HTML EditorKeyboard Shortcuts
Flag this QuestionQuestion 51pts The article describes how the type of capital used in factories is changing. These changes are designed so that all workers need less human capital than factory workers in years past. True or false? Please explain your answer.
Flag this QuestionQuestion 61pts
Which of the following can have a negative value? There might be more than one correct answer.
| inflation as measured by the CPI |
Flag this QuestionQuestion 71pts
This question deals with government debt in another country. Suppose that this country had government debt of $1,000 billion at the end of 2016 and during 2017 they ran a deficit of $200 billion (i.e. that government’s spending was $200 billion more than its tax collections and it borrowed to make up the difference). At the end of 2017 government debt would be ___.
Flag this QuestionQuestion 81pts When do we use this calculation: %Δnominal price – %ΔCPI. Please selectALLthat are correct. There might be more than one correct answer.
| When computing economic growth at an annual rate. |
| When computing nominal GDP. |
| When computing the inflation rate (recall it is at an annual rate) |
| When computing the change in a real price. |
| When computing Total Factor Productivity (“A” in the per-worker production function). |
| When putting a price from one year in terms of prices in another year. |
| When computing labor productivity. |
| When computing real per capita GDP. |
Flag this QuestionQuestion 91pts
You’re asked to look at an economy where the share of its population that is working has been constant for 50 years, its total factor productivity (TFP, which measures technology) is growing at 1.5% a year for this period, as has the amount of capital per worker. If you plotted out real per capita GDP for this country on the vertical axis and the last 50 years on the horizontal axis what would you expect to see?
| the curve is generally upward sloping |
| the curve is downward sloping |
Flag this QuestionQuestion 101pts When would we use this calculation: real price2000= nominal price1995• (CPI2000/ CPI1995)? Please selectALLthat are correct. There might be more than one correct answer.
| When computing economic growth at an annual rate. |
| When computing nominal GDP. |
| When computing the inflation rate (recall it is at an annual rate). |
| When computing the change in a real price. |
| When computing Total Factor Productivity (“A” in the per-worker production function). |
| When putting a price from one year in terms of prices in another year. |
| When computing labor productivity. |
| When computing real per capital GDP. |
Flag this QuestionQuestion 111pts
In 1953, at the end of the Korean War, real per capita GDP in South Korea was $1,095 and in 2014 it was $34,588. Please compute South Korea’s average annual growth rate.
Flag this QuestionQuestion 121pts
From the last question, how does this growth rate compare to that of the U.S. and China?
| Its growth rate is less than both the U.S. and China’s growth rates. |
| Its growth rate is between the growth rates of China and the U.S. |
| Its growth rate is greater than either the growth rate of China or of the U.S. |
Flag this QuestionQuestion 131pts When do we use the equation g = (final value / initial value)1/(years between) – 1 ? Please selectALLthat are correct. There might be more than one correct answer.
| When computing economic growth at an annual rate. |
| When computing nominal GDP. |
| When computing the inflation rate (recall it is at an annual rate). |
| When computing the change in a real price. |
| When computing Total Factor Productivity (“A” in the per-worker production function). |
| When putting a price from one year in terms of prices in another year. |
| When computing labor productivity. |
| When computing real per capita GDP. |
Flag this QuestionQuestion 141pts
In class we talked about the impact of inflation on those with debt that are being repaid. Which is the best way to think about how inflation and debts interact?
| Inflation helps those with debts repay their loans. |
| While inflation helps one repay debts, the most important point is the real interest rate. |
Flag this QuestionQuestion 151pts
Say that you’re working on computing Y/pop for Canada, a county very much like the U.S. in that prices in their currency are similar. However, the economy is much smaller. You calculate Y/L and you get $3,000. Is this a reasonable value?
Flag this QuestionQuestion 161pts
Here we want to understand and become conversant in some of the key terms that we use in this section. Say that Country A had labor productivity of $90,000 and that 45% of its population is working, while Country B has labor productivity of $85,000 and 50% of its population was working (despite being different countries, all amounts are in U.S. dollars). Which would have the smallest GDP per person?
