Question

Please some help! AP macro economics

For each prompt below, carefully and thoroughly follow the directions. For the graphs, be certain to accurately label all axes, curves, and points as appropriate. Use arrows to indicate the direction of any shifts. Show your work for any calculations.

Country Y

(f) Country Y has a real GDP per capita of $75, and it has a population of 2 million. Calculate Country Y's real GDP.

(g) Four years later, the GDP per capita of Country Y is $90. Assume there has been no technological advancement and no increase in physical capital in that time period. Identify a policy that could lead to this increase.

(h) Calculate the economic growth rate for Country Y over the time period described in part (g). Show your work.

Answer 1

Country Y's real GDP is calculated at $150,000,000, and the growth in GDP per capita over four years can be attributed to improved labor productivity. The economic growth rate for Country Y is 20% during this period.

Step-by-step explanation:

Country Y has a real GDP per capita of $75, and with a population of 2 million, its real GDP is calculated by multiplying the per capita amount by the population. This results in a real GDP of $150,000,000 (75 * 2,000,000).

After four years, the GDP per capita increases to $90 without technological advancement or an increase in physical capital. This could indicate a policy that focused on improving labor productivity, such as education and healthcare enhancements, to raise the efficiency and effectiveness of the workforce. To calculate the economic growth rate over the period described, use the formula: Growth Rate = ((Final GDP per capita - Initial GDP per capita) / Initial GDP per capita) * 100. Substituting the given values: Growth Rate = (($90 - $75) / $75) * 100 = 20%.