Jtilizing the aggregate production functions to the right,Robert Solow asserted that the most significant or criticalfactor in driving long term economic growth isand is reflected in the movement fromtoO A. capital accumulation; "B" to C"Productionfunction3DB. technological change; "A" to "B"Productionfunction2O C. economies of scale; "D" to "C"O D. technological change; "B" to "CProductionfunction,:BO E. capital accumulation; "A" to "C"$40Capital per hour worked (K/L)60Click to select your answer.la19LhedngeSSS-76DOCXcBook AirF9F10F11F12F7F8+89delReal GDP per houraorked (Y/L)

We are going to discuss the inevitable contribution of technological change into the economic…

Jtilizing the aggregate production functions to the right, Robert Solow asserted that the most significant or critical factor in driving long term economic growth is and is reflected in the movement from to Production O A. capital accumulation; "B" to C" function3 O B. technological change; "A" to "B" Production "function2 O C. economies of scale; "D" to "C" O D. technological change; "B" to "C Production function, EB 4 O E. capital accumulation; "A" to "C" $40 Capital per hour worked (K/L) 60 Real GDP per hourorked (Y/L)

Jtilizing the aggregate production functions to the right, Robert Solow asserted that the most significant or critical factor in driving long term economic growth is and is reflected in the movement from to Production O A. capital accumulation; "B" to C" function3 O B. technological change; "A" to "B" Production "function2 O C. economies of scale; "D" to "C" O D. technological change; "B" to "C Production function, EB 4 O E. capital accumulation; "A" to "C" $40 Capital per hour worked (K/L) 60 Real GDP per hourorked (Y/L)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 11P

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Similar questions

What do the growth accounting studies conclude are the determinants of growth? Which is more important, the determinants or how they am combined?
How is the concept of technology, as defined with the aggregate production function, different from our everyday use of the word?
An economy starts off with a GDP per capita of 5,000. How large will the GDP per capita be if it grows at an annual rate of 2 for 20 years? 2 for 40 years? 4 for 40 years? 6 for 40 years?
What are the advantages of backwardness for economic growth?
Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in reponse to each of the following changes? Production function is Y=AK^1/3L^2/3 a. Investment rate doubles b. depreciation rate falls by 10% c. Productivity level rises by 10% d. Earthquake destrys 75% of the capital stock e. Generous immigration policy lead the population to double
Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in reponse to each of the following changes? Production function is Y=AK^1/3L^2/3 d. Earthquake destrys 75% of the capital stock e. Generous immigration policy lead the population to double Fast answer
which one(s) is true (a) If an economy can raise its annual real GDP growth rate from 3.8 percent to 4.5 percent, its real GDP doubling time is reduced by 15 years. (b) Suppose that the government passes a law requiring households to increase savings 10% above previous levels. According to Solow's growth theory, in the long run output per capita will grow less rapidly. (c) If an economy has a real GDP doubling-time of 48 years, this will be increased to 56 years if annual GDP growth is reduced by 3.2 percentage points. (d) If K = 3000, n = 0.02, and depreciation, δ= 0.04 and g =0.03, then investment of 320 will hold (K/AL) constant.
(a) Explain the role of capital, labor, and technology in the Solow growth model. (b) Illustrate the steady-state equilibrium in the Solow growth model using a graph, and explain how changes in the savings rate and technological progress affect the steady-state equilibrium. 2. Consider an economy with the following production function: Y = K^0.3 * (AL)^0.7, where Y is output, K is capital, L is labor, and A is the level of technology. (a) Calculate the marginal product of capital (MPK) and the marginal product of labor (MPL). (b) If the capital stock (K) is 100, the labor force (L) is 200, and the level of technology (A) is 2, find the level of output (Y) in this economy. 3. Suppose there is a negative demand shock that causes the aggregate demand equation in an economy to change from: AD1: Y = 2000 - 100P to AD2: Y = 1800 - 100P The aggregate supply equation is given by: AS: Y = 400 + 50P (a) Calculate the initial equilibrium price level (P1) and real output (Y1)…
(B)(Solow) An economy in which no TFP growth occurs is at steady state. An earthquakeoccurs destroying a fraction of the capital stock. Miraculously, no one is hurt. For this scenario, whathappens to the economy in the periods after the earthquake? Explain what happens to the level ofGDP, the level of the capital stock, and the growth rates of these variables in this example.
Consider an economy with a Cobb-Douglas production function with α = 1/3 that begins in steady state with a growth rate of technological progress of g of 2 percent. Consider what happens when g increases to 3 percent. (a) What is the growth rate of output per worker before the change? What happens to this growth rate in the long run? (b) Perform a growth accounting exercise for the economy, decomposing the growth rate in output per capita into components contributed by capital per capita growth and technology growth. What is the contribution of the change in g to output per capita growth according to this formula? (c) In what sense is the growth accounting result in part b producing a misleading picture of this experiment? Explain why this is the case.
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Consider an economy in which the labour force grows by 2.7 percent per annum, physical capital grows by 4 percent per annum and human capital grows by 1.8 percent per annum. Suppose 45 percent of national income goes to labour and 40 percent to capital. Use a constant returns to scale production function to answer the following growth accounting questions: (a) If the Solow residual were zero what rate of growth would the economy achieve? (b) The country's actual rate of growth has been 4.5 percent per annum, which is faster than the growth rate generated by the accumulation of capital and labour stocks. Calculate the value of the residual.