Suppose that the population growth rate is . A natural disas…

Suppose that the population growth rate is . A natural disaster destroys a large portion of a country’s capital stock. If the saving and depreciation rates are unchanged, the Solow model predicts that the economy will ________ and eventually reach ________

Suppose we compare GDP per person in Botswana and the United…

Suppose we compare GDP per person in Botswana and the United States in two ways: first using the nominal exchange rate and then again using the relative price-based conversion. The GDP per person in Botswana calculated using the exchange rate method is $500 while that calculated using the relative price-based conversion is $1,000. What is the relative price ratio between Botswana and the U.S. (i.e., the price level for Botswana relative to the United States)?  Round your answer to the nearest hundredth.

Suppose that nominal (and real) GDP in the United States was…

Suppose that nominal (and real) GDP in the United States was $800 in the year 1900. Assume that the US nominal GDP grows at a constant rate of 4.5% and the inflation rate is 3.0% per year (every year). Using the constant growth rule from equation (3.7) in the textbook plus the fact that