“Concept Problems.”
“9. Suppose real GDP increases during President Obama’s term in office at a 5% rate. Would that imply that his policies were successful in “growing the economy”?” (Macroeconomics Principles V. 2.0.) This would mean two things. The first thing would mean that his policies were successful if he found the country in a recession gap and his administration was the first to implement or find the solution to the problem. The second thing would be that his policies were not successful because the recession did not begin during his administration and that the policies were started by his predecessor. These policies take time to take effect or bring results due to the impact lag.
“Numeric Problems.”
“1. The population of the world …show more content…
P X (1+r) ^ n, P = population = 12.628 billion (2048), r = growth rate = 1.6%,
(12.628) X (1 + 0.016) ^ 45 = (12.628) (1.016) ^45 = (12.628)(2.0428) = 25.7964784 =26 billion
So, the world’s population would be 25.256 or 26 billion in 2093.
“2. With a world population in 2003 of 6.314 billion and a projected population growth rate of 1.1% instead (which is the United Nations’ projection for the period 2003 to 2015).” (Macroeconomics Principles V. 2.0.)
“a. Compute the doubling time.” (Macroeconomics Principles V. 2.0.)
Using the rule of 72,
Doubling Time equal to seventy-two divided by the population growth rate of 1.1% = 72/1.1 = 65.45. Therefore,
Doubling Time = 65 years.
“b. State the year in which the world’s population would be
12.628 billion.” (Macroeconomics Principles V. 2.0.)
P X (1+r) ^ n, P = population = 6.314 billion (2003), r = growth rate = 1.1%,
(6.314) X (1 + 0.011) ^65 = (6.314)(1.011)^65 =(6.314)(2.0362) = 12.8567 =13 billion
So, the world’s population would be 12.628 billion in 2068.
Reference
Rittenberg, L. and Tregarthen, T. (2012). Macroeconomics Principles V. 2.0. Licensed under Creative Commons by-nc-sa 3.0
“9. Suppose real GDP increases during President Obama’s term in office at a 5% rate. Would that imply that his policies were successful in “growing the economy”?” (Macroeconomics Principles V. 2.0.) This would mean two things. The first thing would mean that his policies were successful if he found the country in a recession gap and his administration was the first to implement or find the solution to the problem. The second thing would be that his policies were not successful because the recession did not begin during his administration and that the policies were started by his predecessor. These policies take time to take effect or bring results due to the impact lag.
“Numeric Problems.”
“1. The population of the world …show more content…
P X (1+r) ^ n, P = population = 12.628 billion (2048), r = growth rate = 1.6%,
(12.628) X (1 + 0.016) ^ 45 = (12.628) (1.016) ^45 = (12.628)(2.0428) = 25.7964784 =26 billion
So, the world’s population would be 25.256 or 26 billion in 2093.
“2. With a world population in 2003 of 6.314 billion and a projected population growth rate of 1.1% instead (which is the United Nations’ projection for the period 2003 to 2015).” (Macroeconomics Principles V. 2.0.)
“a. Compute the doubling time.” (Macroeconomics Principles V. 2.0.)
Using the rule of 72,
Doubling Time equal to seventy-two divided by the population growth rate of 1.1% = 72/1.1 = 65.45. Therefore,
Doubling Time = 65 years.
“b. State the year in which the world’s population would be
12.628 billion.” (Macroeconomics Principles V. 2.0.)
P X (1+r) ^ n, P = population = 6.314 billion (2003), r = growth rate = 1.1%,
(6.314) X (1 + 0.011) ^65 = (6.314)(1.011)^65 =(6.314)(2.0362) = 12.8567 =13 billion
So, the world’s population would be 12.628 billion in 2068.
Reference
Rittenberg, L. and Tregarthen, T. (2012). Macroeconomics Principles V. 2.0. Licensed under Creative Commons by-nc-sa 3.0