Sınav gezintisiSoru 2Chapter 8: Economic Growth I: Capital Accumulation and Population GrowthHenüz134.6.cevaplanmadı5,00 üzerindenQuestion: If the capital stock in the Solow growth is constant, the ....... determines the level of output10111213141516işaretlenmişand theestablishes the distribution of output between ...... andP Soruyu1920işaretleO a.depreciation rate / population growth rate / wages/ profits.Uygulamayı bitir .Kalan süre 0:23:27b.production function/ saving rate/ consumption/investment.O c.population growth rate / saving rate /wages /profits.Od.production function/ saving rate /wages/ profits.e.saving rate/ production function / consumption/investment.TUR

Solow growth model is the one which analyses output changes in the economy due to the changes in…

Chapter 8: Economic Growth I: Capital Accumulation and Population Growth Question: If the capital stock in the Solow growth is constant, the . .. determines the level of output and the ...... establishes the distribution of output between and ******... ....... .... O a. depreciation rate / population growth rate / wages / profits. O b. production function/ saving rate / consumption / investment. population growth rate / saving rate /wages/profits. Od. production function / saving rate/wages / profits. O e saving rate / production function / consumption / investment.

Chapter 8: Economic Growth I: Capital Accumulation and Population Growth Question: If the capital stock in the Solow growth is constant, the . .. determines the level of output and the ...... establishes the distribution of output between and ******... ....... .... O a. depreciation rate / population growth rate / wages / profits. O b. production function/ saving rate / consumption / investment. population growth rate / saving rate /wages/profits. Od. production function / saving rate/wages / profits. O e saving rate / production function / consumption / investment.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 5P

See similar textbooks

Similar questions

Consider an economy that has access to a production technology Y = AKαL1−α where Y is output, A is the level of technology, K is capital and L is the amount of labor in the economy. Capital evolves according to K˙ = sY (thus, the depreciation rate δ = 0). The x˙ population growth rate is n. (Throughout, gx = x , where x can be any of the variables in the model.) (a) Assume that technology is determined by A = BKφ What sort of endogenous growth model is this? Find K/K in terms of the K, L, and other parameters of the model.
Country Has Cobb-Douglas production function: Y(it) = A(it) x K(it)1/3L(it)2/3 Where: Y(it) = realGDP K(it) = Capital L(it) = No. workers employed in country (i) on date (t) Suppose multiple countries share the same alpha = 1/3 but different levels of totalfactorproductivity (A(it)). How would one calculate the average annual growth rate of totalfactorprodctivity of each country
How does a fall in the growth rate of technology (g) affect equilibrium capital and consumption in the Ramsey model
Assume that a country's production function is Y = K1/2L1/2 and there is no population growthor technological change.a. What is the per-worker production function y = f (k)?b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What isY? What is labor productivity computed from the per-worker production function? Is thisvalue the same as labor productivity computed from the original production function?c. Assume that 10 percent of capital depreciates each year. What gross saving rate isnecessary to make the given capital–labor ratio the steady-state capital–labor ratio? (Hint:In a steady state with no population growth or technological change, the saving ratemultiplied by per-worker output must equal the depreciation rate multiplied by the capital–labor ratio.)d. If the saving rate equals the steady-state level, what is consumption per worker? Only D, other option answered
Assume that a country's production function is Y = K1/2L1/2 and there is no population growthor technological change.a. What is the per-worker production function y = f (k)?b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What isY? What is labor productivity computed from the per-worker production function? Is thisvalue the same as labor productivity computed from the original production function?c. Assume that 10 percent of capital depreciates each year. What gross saving rate isnecessary to make the given capital–labor ratio the steady-state capital–labor ratio? (Hint:In a steady state with no population growth or technological change, the saving ratemultiplied by per-worker output must equal the depreciation rate multiplied by the capital–labor ratio.)d. If the saving rate equals the steady-state level, what is consumption per worker?
8 Suppose we are considering a Solow Model without technology progress. Population growth rate=0.03 The capital accumulation is sY-dK s=0.1, d=0.02 Please calculate the capital per capita under the steady state. A. 2 B. 4 C. 6 D. 8 E. 16 F. None of the above
2. Solow-Swan Model (a) You will demonstrate the importance of diminishing returns to capital in the Solow-Swanmodel. Draw a Solow-Swan diagram in which there are constant returns to capital. Thiswould happen if the production function were Yt= AKt, where A = 1. Furthermore,assume that the sum of population growth and the depreciation rate is greater than thesaving rate. Does the economy converge to a steady state in this case? To answer thisquestion, you should draw a Solow-Swan diagram in terms of output per person, as we didin class. Use this diagram to explain why the economy converges to a steady state or doesnot. (b) Assume, instead, that the sum of population growth and the depreciation rate is equal tothe saving rate. In this case, are there any steady states? If yes, describe the steady-statelevels of capital per person. If no, explain why not. (Note: Diagram is not needed for thispart.)
Some resource-rich countries have succeeded in converting resource wealth into longterm and equitable economic development, while many others have not. Naturalresources have played a fundamental role in the growth of several industrializedeconomies, including Germany and the United Kingdom, where coal and iron ore depositswere a precondition for the Industrial Revolution. The United States was the world’sleading mineral economy from the mid-nineteenth to the mid-twentieth century and in thesame period became the world’s leader in manufacturing (van der Ploeg 2011). Morerecently, countries such as Botswana, Chile, and Norway have used abundant oil andmineral resources as the foundation for economic growth. However, in many othercountries, resource extraction appears to have undermined governance, fed corruptionand capital flight, and increased inequality.Required:(a) Discuss the main challenges posed by resource revenues; and(b) Discuss the special fiscal institutions and mechanisms…
The capital accumulation theory of economic growth that economies attain growth through saving invested in increasing the capital resources in the economy fails to take account of which of the following factors? a) For capital accumulation to produce economic growth it has to be the right type of capital that can be applied to the production of goods desired by society. b) The capital created has to be efficient. Savings may be squandered by producing capital goods that consume a lot of resources to produce, produce poor quality goods, or are wasteful of other resources. c) For capital to be productive there must be appropriate infrastructure including transportation and communication systems, banking and legal systems, as well as requisite natural resources and often appropriately skilled labor. d) Societies may still squander the wealth created by capital accumulation and in the long-run limit the growth of the economy. e) All of the above
Consider the following (made-up) statistics for some econ-omies. Assume the exponent on capital is 1/3 and that the labor composition is unchanged. For each economy, compute the growth rate of TFP.(a) A European economy: gY/L = 0.03, gK/L = 0.03.(b) A Latin American economy: gY/L = 0.02, gK/L = 0.01.(c) An Asian economy: gY/L = 0.06, gK/L = 0.15.
In the Solow growth model:1. Write the expression for consumption per capita in the steady-state equilibrium, asa function of capital per capita.2. What is the golden rule quantity of capital per capita ? Specifically, tell me thedefinition of this concept, and then relate it to the equation for the equilibriumconsumption per capita whose expression answers question (1) above.23. How do we find the golden rule savings rate, once we know the golden rule quantityof capital per capita?
If Y = A*(K*L)^.5 a. What is the equation for the steady state capital per worker k* in terms of savings rate deprectation rate population growth rate and technology? b. If technology doubles how much does the steady state of capital increase by?