According to the neoclassical growth model: A. The equilibrium growth rate can never change B. The rate of population growth is negatively correlated with output per capita. C. A change in the savings rate does not affect a countrys welfare D. Savings and investments are never equal.
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According to the neoclassical growth model:
A. The equilibrium growth rate can never change
B. The rate of population growth is negatively correlated with output per capita.
C. A change in the savings rate does not affect a countrys welfare
D. Savings and investments are never equal.
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- The long-run effects of an increase in the saving rate include...? a. a higher level of productivity. b. a higher growth rate of productivity. c. a higher growth rate of income. d. All of the above are correct.For an economy in which there is no technological progress, explain what must happen for the steady state to occur. Please mention the rate of growth of output, output per worker and the capital stock in detail pleaseSuppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes? (a) The investment rate doubles (b) the depreciation rate falls by 10% (c) The productivity level rises by 10% (d) an earthquake destroys 75% of the capital stock (e) A more generous immigration policy leads the population to double.
- Economics The Solow model says that population growth will not benefit a country in the long run but Michael Kremer disagrees. Explain both positions. Use a graph to explain Solow's argument.Question 6a. Graphically depict the Golden rule level of capital. Label all points clearly. b. Explain the concept of the Golden rule level of capital. c. Why might the Golden Rule steady state be preferred to the initial steady state?d. Look at the hypothetical data below:Real GDP per capitaNigeria $1,000Mexico $8,000China $15,000United States $33,000Fact is, changes in income over time explains economic growth of a country. Using two sources of growth, account for the large differences in income per capita across these countries?e. Discuss three policies governments can use to promote economic growth.Assume a country is in steady state. Explain what will happen id a disaster hit the country and destroyed 40% of its capital stock, but nobody is killed. Draw the diagram of solow model.
- In the steady-state, Kt = Kt. Provide a necessary condition on and for economic growth to occur in the steady-state? Explain......Discuss the difference between Neoclassical Growth Theory and New Growth Theory. What does new growth theory emphasize on?growth in real GDP is not always seen as economic growth. why?
- What is the inflation of higher savings on economic growth classify as? a. Marco, examining one sector in economy b. Marco, examining one firm in economy c. Macro, examining entire economyThe IMF forecasted Australia’s real GDO at $1,730 billion in 2017 and $1,732 billion in 2018, and Australia’s population at 24.6 million in 2017 and 25.0 million in 2018. Calculate: a) The growth rate of real GDP b) The growth rate of real GDP per person. c) The approximate number of years it will take for real GDP per person in Australia to double if the current growth rate of real GDP is maintained.(a) Identify the factors which are the drivers behind a countries rate of growth. Describe the relevance of each of them in having an effect the growth rate of an economy. (b) Describe the measures that a country can take to improve a countries long term potential growth rate.