Question

Here is some data on the economy: 2007 2008 Real GDP $1,300,000 $1,328,000 Populatio 12,227 12,838 2009 $1,429,000 13,480 2010 $1,411,000 14,154 2) Calculate real GDP per capita 3) Calculate the growth rates for each year for real GDP and population. 4) Estimate the growth rates for each year for GDP per capita real using the growth rates from 3). Check your estimate by calculating the actual per capita growth rate. 5) Using the growth rates from 2008 to 2009, how long will it take a) For real GDP to double? b) For population to double? c) For real GDP per capita to double? 6) Graph the effect of the population growth on the economy's real GDP. Be sure to use both the labor market graph and the production function graph. 7) Labor productivity decreases. Graph the effect of the change in productivity on the economy's real GDP. Be sure to use both the labor market graph and the production function graph.

Answer 1

Question 2

Year 2007

Real GDP = $1,300,000

Population = 12,227

Calculate the real GDP per capita -

Real GDP per capita = Real GDP/Population

Real GDP per capita = $1,300,000/12,227 = $106.32

The real GDP per capita in 2007 was $106.32

Year 2008

Real GDP = $1,328,000

Population = 12,838

Calculate the real GDP per capita -

Real GDP per capita = Real GDP/Population

Real GDP per capita = $1,328,000/12,838 = $103.44

The real GDP per capita in 2008 was $103.44

Year 2009

Real GDP = $1,429,000

Population = 13,480

Calculate the real GDP per capita -

Real GDP per capita = Real GDP/Population

Real GDP per capita = $1,429,000/13,480 = $106.01

The real GDP per capita in 2009 was $106.01

Year 2010

Real GDP = $1,411,000

Population = 14,154

Calculate the real GDP per capita -

Real GDP per capita = Real GDP/Population

Real GDP per capita = $1,411,000/14,154 = $99.69

The real GDP per capita in 2010 was $99.69

Note -: As per the Chegg Answering Policy, when more than 1 question is posted then, in that case, only 1st posted question is answered with complete explanation.