This assignment due date has been postponed to Wednesday as we haven't covered some material relevant...

    

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This assignment due date has been postponed to Wednesday as we haven't covered some material relevant to answer questions as we are a little behind. For the graphs, if you are not familiar with graphing on word, you can do it on paper, take a picture and then insert in on your word file you are submitting. 1. Using the data from slide 9 from chapter 3 for Japan for the period from 1950-1992, calculate the percentage of Japan's growth in per capital GDP that can be attributed to technological advancement. That is, calculate the Solow residual. You must show all relevant work and include the proper growth accounting formula. 2. Graph and explain using the equation of motion, how an increase in the population growth rate affect the equilibrium level of per capita capita, and percapita income. 3. Graph and explain using the equation of motion, how an increase in the population savings rate affect the equilibrium level of per capita capita, and percapita income. 4. Using your answer for question 3, assess whether the savings rate and the growth rate of income are correlated, or uncorrelated in the long run, that is, when the economy has had enough time to move from its original steady state equilibrium with savings rate 1, to its new equilibrium with savings rate 2. USA GDP Per Capita Japan Nonresidental Capital Stock Per Capita Difference USA Japan Difference 1950-1973 2.42 8.01 5.59 1.78 7.95 6.17 1973-1992 1.38 3.03 1.65 2.12 6.05 3.93 1950-1992 1.95 5.73 3.78 1.93 7.09 5.16 This assignment due date has been postponed to Wednesday as we haven't covered some material relevant to answer questions as we are a little behind. For the graphs, if you are not familiar with graphing on word, you can do it on paper, take a picture and then insert in on your word file you are submitting. 1. Using the data from slide 9 from chapter 3 for Japan for the period from 1950-1992, calculate the percentage of Japan's growth in per capital GDP that can be attributed to technological advancement. That is, calculate the Solow residual. You must show all relevant work and include the proper growth accounting formula. 2. Graph and explain using the equation of motion, how an increase in the population growth rate affect the equilibrium level of per capita capita, and percapita income. 3. Graph and explain using the equation of motion, how an increase in the population savings rate affect the equilibrium level of per capita capita, and percapita income. 4. Using your answer for question 3, assess whether the savings rate and the growth rate of income are correlated, or uncorrelated in the long run, that is, when the economy has had enough time to move from its original steady state equilibrium with savings rate 1, to its new equilibrium with savings rate 2. USA GDP Per Capita Japan Nonresidental Capital Stock Per Capita Difference USA Japan Difference 1950-1973 2.42 8.01 5.59 1.78 7.95 6.17 1973-1992 1.38 3.03 1.65 2.12 6.05 3.93 1950-1992 1.95 5.73 3.78 1.93 7.09 5.16

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Solow residual The Solow residual is a way to estimate the portion of economic growth that cannot be explained by changes in capital or labor Its often attributed to technological advancement Heres th... View the full answer