MUĞLASITKI KOÇMANÜNİVERSİTEŞİMSKÜ-LMSSoru 2Chapter 8: Economic growth I: Capital Accumulation and Population GrowthSınav gezintisiHenüzcevaplanmadıQuestion: In the Solow growth model, the steady state level of output per worker would be greater if1.346787,00 üzerindenthe .......... rate rose or the ......... rate declined.işaretlenmiş101112 131415P SoruyuişaretleLütfen birini seçin:Uygulamayı bitir.O a.depreciation / population growthKalan süre 0:18:13Ob.population growth/savingOc.saving; depreciationd.population growth /depreciationOe.population growth / saving21:22TUR13.04 2021

According to our Solow Model, output per worker (y) is a function of capital per worker (k). The…

Question: In the Solow growth model, the steady state level of output per worker would be greater if the rate rose or the rate declined. Lütfen birini seçin: Oa. depreciation/ population growth Ob. population growth / saving Oc. "saving; depreciation Od. population growth/depreciation population growth/saving

Question: In the Solow growth model, the steady state level of output per worker would be greater if the rate rose or the rate declined. Lütfen birini seçin: Oa. depreciation/ population growth Ob. population growth / saving Oc. "saving; depreciation Od. population growth/depreciation population growth/saving

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

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Consider the Swan-Solow model of economic growth. In questionsa) Briefly define the steady state and show it in your diagram. b) A major shift in people’s values causes them to save less and spend more as a percentageof their income. Analyse the effects of this change on each of the curves in your diagram,and find the new steady state. Briefly discuss your finding in the context of economicgrowth.
3. An economy described by the Augmented Solow growth model has the following production function with populationgrowth (1+n) and technological growth (1+z):y =p(k)(a) Solve for the steady-state values of capital per capita and output as a function of s, n, z, and δ.(b) A developed country has a saving rate of 28 percent and a population growth rate of 1 percent per year. A lessdeveloped country has a saving rate of 10 percent and a population growth rate of 4 percent per year. In bothcountries, g = 0.02 and d = 0.04. Find the steady-state value of y for each country.(c) What policies might the less developed country pursue to raise its level of income? Graphically demonstrate howyour advised policy would increase income per capita (y).
Our simple growth model implies that Select one: a.countries with higher K/L ratios will have higher economic growth. b.increases in K/L increase Y/L but at a diminishing rate. c.capital has no impact on Y/L. d.there is little prospect of poor countries catching up with rich countries. In the past few years, several high profile celebrities have campaigned for debt relief for HIPC's (Highly Indebted Poor Countries). While debt relief can potentially play a useful role in poverty reduction there are also some possible downsides such as Select one: a.reducing a poor nations exports. b.increasing government deficits. c.encouraging further debt by setting up an expectation that future debts will also be forgiven. d.under cutting local markets for food and other commodities given as aid.
The country of Swan is very wealthy, with a high level of per capita income and capital. The country of Solow is quite poor, with low levels of per capita income and capital. Both countries have the same production function, Y = Af(K, L), and both countries are described by the Solow–Swan growth model. The two countries will converge to the same level of per capita income only if: a. Swan and Solow are able to trade goods and services b. Swan donates a sufficient amount of its income to Solow c. the population growth rate and depreciation rate are the same d. the saving rate, the population growth rate and the depreciation rate are the same
Consider the Solow growth model seen in lectures. Use n to denote population growth. Which of the following is true in steady state? a. ΔK/K= ΔY/Y= 0 ; Δk/k= Δy/y= 0 b. ΔK/K= ΔY/Y= 0 ; Δk/k= Δy/y= n c. ΔK/K= ΔY/Y= n ; Δk/k= Δy/y= 0 d. ΔK/K= ΔY/Y= n ; Δk/k= Δy/y= n e. None of the above
In the Solow growth model, what happens in an economy when technological progress results in the rate of depreciation falling? Use an economy where there are both workers and effective workers to illustrate the effects of this change in the rate of depreciation and show the steady state effects. USE GRAPHS.
In the Solow–Swan model, a decrease in the rate of population growth will have what effect on the steady-state level of real GDP per capita? a. Increase b. No change in real GDP per capita because although it does change the rate at which output and population are growing, it will make both growth rates change by the same amount and so the output-population ratio will be unchanged c. Decrease d. No change in real GDP per capita because although it does change the level of labour, the level of capital will change to keep the capital-labour ratio the same as before