Answer Happy

When we looked at US changes in Worker Productively over the last 60 years we noted that... OUS Worker Productivity was very constant in this time period, suggesting it was not closely linked to Economic Growth the periods when Worker Productivity growth was the fastest (1950-1970, and 1990-2014) where the periods when US Economic Growth was the fastest the periods when Worker Productivity growth was the fastest (1970-1990) where the periods when US Economic Growth was the fastest O the periods when Worker Productivity growth was the slowest (1970-1990) where the periods when US Economic Growth was actually the fastest
Japan has a level of Real GDP of $7trillion in 2022, and has an economic growth rate of 1.2%. Based on this and their 1.2% annual growth rate, in 2023 their GDP will be $ trillion (no units, round to 3 decimal places) Based on this 2023 value and their 1.2% annual growth rate, in 2024 their GDP will be $ trillion (no units, round to 3 decimal places)
Imagine 2 imaginary currently very low-income countries -- Amazonia and Zeddery. Both countries currently have Real GDP per capita of $5,000 a year. Assume that Amazonia puts in place significant successful Economic development programs, so that they are able to maintain an annual growth rate of 10% for the next 25 years. Assume that over the same next 25years Zeddery has some development successes -- but also alot of failures as well and their average annual growth rate for this time period is only 2%. Based on their starting GDP per capita of $5,000 per year and their 10% annual growth rate, at the end of 25 years Amazonia's GDP per capita will be $ (no units, round to nearest $) In contrast based on their starting GDP per capita of $5,000 per year and their 2% annual growth rate, at the end of 25 years Zeddery's GDP per capita will be $ (no units, round to nearest $)
(WHICH OF THE The graph below shows for a current developed (high-income) country the amount of Output per capita they can achieve based on different levels of Capital and different levels of technology. Use this graph for the next 4 questions. Yc. Technology C J Technology B I Yb H Technology A G F Ya. E K₁ K₂ K3 Capital (physical and human) If we assume that to start of the country is just using a lower level of technology as illustrated by Technology A production line. If this increased their amount of Capital from K1 to K2 and then K3, what would we call this, and what would be the resulting changes in Output per capita? This change in Capital levels is called Invention acceleration, and the higher Capital levels result in unchanged levels of Output per capita This change in Capital levels is called Technological innovation, and the higher Capital levels result in respectively Lower levels of Output per capita This change in Capital levels is called Capital widening, and the higher Capital levels result in respectively Higher levels of Output per capita This change in Capital levels is called Capital Deepening, and the higher Capital levels result in Higher and Higher levels of Output per capita Output per Capita
Based on the changes in the above graph in Capital amounts detailed in the previous question we could state.... Higher levels of Capital are leading to greater and greater amounts of Output per capita, and so we are generating Increasing Marginal Returns Higher levels of Capital are leading to Lower levels of Output per capita, and so we are generating Decreasing Returns. O Even though higher levels of Capital are leading to greater amounts of Output per capita, because we are maintaining the same Technology, we are generating Diminishing Marginal Returns Higher levels of Capital are leading to fixed levels of Output per capita, and so we are generating Constant Marginal Returns
If we know imagine that, instead of being limited to the lower Technology level A, as the country expands its Capital usage from levels K1 to K2 and then K3, it also improves its level of Technology from Technology A, to Technology B and then Technology C. As a result of these changes... We see Output per capita rising, but at a smaller rate of increase than before >>> moving from point E (Output per capita Ya) to point F to Point G We see Output per capita actually now falling >>> moving from point J (Output per capita Ya) to point I (at a lower Output per capita) to Point G (at an even lower Output per capita) We see Output per capita getting significantly and proportionally higher >>> moving from point E (Output per capita Ya) to point H (Output per capita Yb) to Point J (Output per capita Yc) We see Output per capita now constant >>> at a Level of Yb for the 3 different technologies
What the change in the previous question is supposed to illustrate is that... If a developed country is able to achieve improvements in Technology, there is no longer any reason that Economic Growth must necessarily slow down >>> Diminishing Marginal returns no longer apply >>> Economic Convergence may be unlikely to occur If a developed country is able to achieve improvements in Technology, there will still be a slow down in Economic Growth >>> Diminishing Marginal returns still applies >>> Economic Convergence may be just as likely to occur Even if a developed country is able to achieve improvements in Technology, there will still be a significant slow down in Economic Growth >>> Decreasing returns now applies >>> Economic Convergence will be even more likely to occur If a developed country is able to achieve improvements in Technology, there will still be a proportional change in Economic Growth >>> Constant Marginal returns applies >>> No change on chances of Economic Convergence taking place