Exam 3: An Overview of Long- Run Economic Growth

The president of the World Bank is on his way to a meeting with the president of Uruguay.He bumps into you in the hallway and wants to know how long it will take for Uruguayan per capita GDP to double.All he knows is that the average growth rate has been about 1 percent.You quickly tell him it will take about __________ years because you know __________.

If France's per capita GDP is $5,000 in 1950 and Portugal's is $2,500,but Portugal is growing faster,the expectation that by some time in the future Portugal's per capita GDP will equal that of France is called economic:

Suppose k,l,and m grow at constant rates given by , ,and )What is the growth rate of y if ?

Suppose k grows at a rate Percent and l grows at a rate Percent;if ,then y grows at:

Define .If , ,and if ,then .

Until about 12,000 years ago,humans were __________;at that point __________ led to the first towns and true economic development.

Suppose there are People in the world today.If the population growth rate equals ,then in 50 years,the world population will be:

The rule of 70 states that:

Suppose that,in 1950,Japan had an initial per capita GDP of $12,000 per year and China had a per capita GDP of $5,000.But China is growing at 5 percent per year and Japan is growing at 2 percent per year.__________ is richer in 2000 with a per capita GDP of approximately __________.

Suppose k,l,and A grow at constant rates given by , ,and )What is the growth rate of y if ?

When a lower-income economy's GDP is able to "catch up" with a higher-income economy's GDP,this behavior is related to an important concept called economic growth.

If the population of Romania was about 22.5 million in 2000 and the average population growth rate is 0.5 percent,then Romania's "initial" population was about __________ in 1960.

Suppose k,l,and A grow at constant rates given by , ,and )What is the growth rate of y if , ?

Identify the benefits and costs of economic growth;explain.

Developed countries' average incomes rose from about __________ in 1700 to about __________ today.

According to historical data,wages in ancient Greece and Rome were about the same as wages in fifteenthcentury Britain.

Since approximately 1950,__________ has been one of the fastest growing economies.

Suppose k,l,and A grow at constant rates given by , ,and )What is the growth rate of y if , ?

Suppose k,l,and m grow at constant rates given by , ,and )What is the growth rate of y if ?

Suppose that,in 1950,Japan has an initial per capita GDP of $15,000 per year and China has a per capita GDP of $2,500.But China is growing at 7 percent per year and Japan is growing at 2 percent per year.In 2005,__________ is the lower-income country,with a per capita GDP of approximately __________.