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Given: We have the following information about this country:
In this country real GDP per capita equals ???? units.
Given: We have the following information about this country for the year 2018.
In this country, the real GDP per capita changes to ??? units so that real GDP equals ??? units.
Suppose that over the course of many years, the civilian population of this country doubles. So we now have the following information about this country:
In this country, the real GDP per capita changes to ?? units and the real GDP equals ?? units.
d, Consider the previous question. After the doubling of the population, the government decides to increase the amount of capital (for example, from foreign investors) to boost the productivity of the workers. The government wants to increase GDP per capita to the level it was before the increase in population. The total amount of capital necessary to achieve this goal equals ?????? units.
e, Consider the previous question. The government succeeds in increasing the level of capital to the desired level. However, much to the surprise of the economists and policy makers, GDP per capita turns out to be 9 units more than what everyone had predicted on the basis of the information they had. They conclude that the unexpected increase in GDP per capita must be due to technological progress. In other words, they conclude that technological progress has caused the average labor productivity to increase by ??? units.
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