Macroeconomics
4th Edition
ISBN: 9780393602487
Author: Jones, Charles I.
Publisher: W. W. Norton & Company
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Question
Chapter 5, Problem 6RQ
To determine
Determinant of shift of curve in the Solow diagram.
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What determines whether a curve shifts in the Solow diagram? Make a listof the parameters of the Solow model, and state whether a change in eachparameter shifts a curve (which one?) or is simply a movement along bothcurves.
Suppose the parameters of the Romer model take the following values:
A = 100
= 0.05, Z = 1/100, and I = 1,000. What is the growth rate of this
country's economy?
10 percent
O 40 percent
O 0.02 percent
O 50 percent
O 0.10 percent
Discuss the concepts represented by each of the following models How are they related?
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