What was this nations incremental capital-ouput ratio

Assignment Help Business Economics

Reference no: EM13985954

In year 0, Nation A's GDP was $200 billion and it had $600 billion worth of capital stock at the end od the year. In year 1, Nation A's GDP grew to $210 billion and its investment (saving) was $50billion. The rate of depreciation is 5%. Show your computations.

(a) what was the GDP growth rate in year1

(b) what was this nation's average capital-ouput ratio in year 0?

(d) If this nation's investment (and saving) in year1 had been $60billion and the incremental capital-output ratio was the same as in (c), what would have been its GDP growth rate that year?

Reference no: EM13985954

Questions Cloud

Determine the shutdown quantity of this firm : Aramco Inc operates in a competitive market with the cost function as follows: TC = 100 + q3 – 12q2 + 60q. If the price per unit is $ 20, find equilibrium level of output. Determine the shutdown quantity of this firm.

Given the structure of the post project review : Given the structure of the post project review, what do you feel is the most important component? Explain why. What is its benefit to the overall risk process?

Case rules for producing at least cost and maximizing profit : For a given firm the MRPL = $50, and the MRPK = $100, while the PL = $10 and the PK = $20. What are the general case rules for producing at least cost and maximizing profits? Is the above firm maximizing profits? Why or why not? What (if anything) ca..

Joint venture to market a ready-to-drink : When Coca-Cola and Nestle formed a joint venture to market a ready-to-drink coffee and tea worldwide, the type of marketing system that was formed would best be described as being a(n):

What was this nations incremental capital-ouput ratio : In year 0, Nation A's GDP was $200 billion and it had $600 billion worth of capital stock at the end od the year. In year 1, Nation A's GDP grew to $210 billion and its investment (saving) was $50billion. The rate of depreciation is 5%. what was this..

What is the electric potential energy of the configuration : The average distance between the proton and the electron in a hydrogen atom is 5.29 x 10-11 m. With the particles separated by this distance, the 'Bohr radius,' what is the electric potential energy of the configuration?

Businesses in product terms or in technological terms : Traditionally, companies have defined their businesses in product terms or in technological terms. However, mission statements should be all of the following EXCEPT:

What is the purpose of empirical criterion keying : Name three things that would be included in the best approach to diagnosing a specific learning ability. What is the purpose of empirical criterion keying? Identify two functions of validity scales on personality tests

Many firms each selling differentiated products : A market in which there are many firms each selling differentiated products is most likely a ________ market.

User Account

All Pages