ECO403 - Macroeconomics Quizzes & GDB

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ECO403 - Macroeconomics Quizzes & GDB

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ECO403 GDB 24 July 2018 to 31st July 2018

Started by Abeeha jannat Jul 28, 2018. 0 Replies

GDB 1:

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ECO403 - Macroeconomics Quiz No. 4 Solution and Discussion Fall 2014 Close Date Feb 25, 2015

Started by Jamshed ur Rehman B.Com 4th. Last reply by Jamshed ur Rehman B.Com 4th Feb 26, 2015. 1 Reply

ECO403 - Macroeconomics Quiz No. 2 Solution and Discussion Fall 2014 Close Date Dec 12, 2014

Started by Irfan Khan MSCS. Last reply by + αиєєѕ υя яєнмαи (B.COM 4th) Dec 12, 2014. 3 Replies

ECO403 - Macroeconomics GDB

Started by Duaa MBS 3rd Sem. Last reply by Ahsan Rizvi MBS 4th May 20, 2014. 7 Replies

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Comment by prince.ammy.lion(MBS) on July 22, 2016 at 4:09pm

The Case Japan and Germany are two success stories of economic growth. Although today they are economic superpowers, in 1945 the economies of both countries were in shambles. World War II had destroyed much of their capital stocks. In the decades after the war, however, these two countries experienced some of the most rapid growth rates on record. Between 1948 and 1972, output per person grew at 8.2 percent per year in Japan and 5.7 percent per year in Germany, compared to only 2.2 percent per year in the United States. The “miracle’’ of rapid growth in Japan and Germany, is what the Solow model predicts for countries in which war has greatly reduced the capital stock.

answer

  • Growth comes from adding more capital and labor inputs and also from ideas and new technology.

 

  • The Solow model believes that a sustained rise in capital investment increases the growth rate only temporarily: because the ratio of capital to labor goes up. 

 

  • However, the marginal product of additional units of capital may decline (there are diminishing returns) and thus an economy moves back to a long-term growth path, with real GDP growing at the same rate as the growth of the workforce plus a factor to reflect improving productivity.

 

  • There are many differences across countries but there are some common elements to countries that have grown continuously.  They have stable governments that pursue prudent economic policies, provide essential infrastructure and services, and take a long-term perspective.  They use the opportunities provided by global markets and they have a dynamic and competitive private sector”

 

  • A ‘steady-state growth path’ is reached when output, capital and labor are all growing at the same rate, so output per worker and capital per worker are constant.

 

  • Neo-classical economists believe that to raise the trend rate of growth requires an increase in the labor supply and also a higher level of productivity of labor and capital.

 

  • Differences in the rate of technological change between countries are said to explain much of the variation in growth rates that we see.
  •  The neo-classical model treats productivity improvements as an ‘exogenous’ variable – they are assumed to be independent of the amount of capital investment.

 

  • The Solow Model features the idea of catch-up growth when a poorer country is catching up with a richer country – often because a higher marginal rate of return on invested capital in faster-growing countries.

 

  • The Solow model predicts some convergence of living standards (measured by per capita incomes) but the extent of catch up in living standards is questioned – not least the existence of the middle-income trap when growing economies find it hard to sustain growth and rising per capita incomes beyond a certain level.
Comment by usman younas (MBS-II) on April 30, 2013 at 4:37pm

wasa ma na kar liya ha quiz.... :) aur tm hoti kaha ho aj kal....

Comment by asma mehmood m.b.s on April 30, 2013 at 3:50pm

nahi or kch ni bs itna he 

Comment by usman younas (MBS-II) on April 30, 2013 at 8:50am

ok madam aur kuch....?

Comment by asma mehmood m.b.s on April 29, 2013 at 5:36pm

quiz timing select krn or sb studnts participte krn

 

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