Assignment - Economic growth in the Arab world: what is missing?
Learning Objectives -
- Discuss the importance of long-run economic growth.
- Discuss the role of the financial system in facilitating long-run economic growth.
- Explain what happens during a business cycle.
Problem 1 - The Role of Technological Change in Growth
Between 1960 and 1995, real GDP per capita in Singapore grew at an average annual rate of 6.2 percent. This very rapid growth rate results in the level of real GDP per capita doubling about every 11.5 years.
In 1995, Alywn Young of the University of Chicago published an article in which he argued that Singapore's growth depended more on increases in capital per hour worked, increases in the labor force participation rate, and the transfer of workers from agricultural to nonagricultural jobs than on technological change.
If Young's analysis was correct, predict what was likely to happen to Singapore's growth rate in the years after 1995.
What Explains Rapid Economic Growth in Botswana?
Problem 2 - How Would a Consumption Tax Affect Saving, Investment, the Interest Rate, and Economic Growth?
Textbook - Economics, Arab World Edition R. Glenn Hubbard, Anthony Patrick O'Brien, Ashraf Eid, Amany El Anshasy,
Chapter 17 - Economic Growth, the Financial System, and Business Cycles.