An economy of 25 million people has twenty percent of them engaged in research and development, where their productivity is 0.0056. The economy is on a balanced growth path, when suddenly a wave of immigration raises the population to 27 million
Assume that the new workers are immediately "on the job," and that the fraction engaged in R&D remains twenty percent. For the one period that begins with this population increase, the growth rate of output per person is ________. [Refer to the instruction above.] A) 4.3%
B) 1.8%
C) 3%
D) 8%
B
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In the macroeconomic long run
A) real GDP is always below potential GDP. B) there is full employment with no unemployment. C) output always is above potential GDP. D) there is full employment and real GDP is equal to potential GDP.
A price ceiling that sets the price of a good below market equilibrium will cause
a. an increase in quantity demanded of the good. b. a decrease in quantity supplied of the good. c. a shortage of the good. d. all of the above.
(Appendix) Which of the following production functions exhibits increasing returns to scale?
A. Q = Kl/2L2/3 B. Q = Kl/4Ll/3 C. Q = K/L D. Q = K1/2Ll/2
Broad-based taxes are less likely to be shifted than partial taxes are.
Answer the following statement true (T) or false (F)