Exam 3: An Overview of Long-Run Economic Growth

Suppose k and l grow at constant rates given by $\bar { g } _ { k }$ and $\bar { g } _ { i }$ and A is a constant. If $y = A k ^ { a } l ^ { 1 - a }$ the growth rate of y is $\bar { g } _ { y } = \bar { g } _ { A } + a \bar { g } _ { k } - ( 1 - a ) \bar { g } _ { l } .$

If the 130,000-year period since anatomically modern humans made their first appearance were compressed into a single day, economic growth would have begun in the last three minutes.

Suppose k grows at a rate $\bar { g } _ { k } = 3$ percent and l grows at a rate $\bar { g } _ { i } = 9$ Percent. If $y = k ^ { 1 / 3 } l ^ { 1 / 3 }$ , Then y grows at:

In 2010, one country to have a higher per capita GDP than the United States was Sweden.

Between 1970 and 1976, Israel's average inflation rate was about 65 percent per year. With that rate of inflation, prices would double about every ________ using the rule of 70.

Suppose k, l, and A grow at constant rates given by $\bar { g } _ { k }$ , $\bar { g } _ { y}$ , and $\bar { g } _ { A }$ ' The growth rate of y if $y = A k ^ { a } l ^ { a }$ is $\bar { g } _ { y } = \bar { g } _ { A } + a \left( \bar { g } _ { k } + \bar { g } _ { i } \right)$