Econ 252: Intermediate Macroeconomics
Vanika Sok
Lafayette College
Prof. Ogrokhina
WP3 Assignment
1. I think there was no growth in living standards for thousands of years, and this situation
changed only in recent centuries because in recent years globalization has changed the
way people live and communicate. In recent centuries, there has been growth in
population, advancement in technology, the increase in global trade, the increase of
buyers and sellers in market systems, an increase in research and development, and the
creation of education institutions all over the world, contributing to the growth of living
standards among nations worldwide.
2. Example using the rule of 70: Let’s say country A has a number of internet users that is
growing at a constant rate of 6% per year. By applying the Rule of 70, we can estimate
how long it will take for country A to double its number of internet users.
Applying the Rule of 70:
Number of years to double = 70/Growth rate = 70/6 = 11.667 years
Therefore, it would take country A approximately 11.667 years for its number of internet
users to double.
3. Some benefits of economic growth are:
a. Increases in life expectancy
b. Reductions in infant mortality
c. Higher incomes
d. An expansion in the range of goods and services available
e. Technology advancement
f.
Higher living standards
g. Job creation
h. Reduced Poverty
i.
Innovation
Some costs of economic growth are:
a. Environmental problems such as pollution, the depletion of natural resources,
global warming
b. Income inequality
c. Loss of certain jobs and industries due to technology advancement