MACROECONOMICS+SAPLING+6 M REEF HC>IC<
10th Edition
ISBN: 9781319267599
Author: Mankiw
Publisher: MAC HIGHER
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Question
Chapter 9, Problem 1QQ
To determine
The output per person.
Expert Solution & Answer
Answer to Problem 1QQ
Option (c) is the correct answer.
Explanation of Solution
Option (c):
When the rate of population growth is 1 percent, the rate of technological progress is 3 percent, the
Option (a):
When the rate of population growth is 1 percent, the rate of technological progress is 3 percent, the depreciation is 5 percent and the saving rate is 10 percent, the output per person will not grow at 1 percent. Thus, option (a) is incorrect.
Option (b ):
When the rate of population growth is 1 percent, the rate of technological progress is 3 percent, the depreciation is 5 percent and the saving rate is 10 percent, the output per person will not grow at 2 percent. Thus, option (b) is incorrect.
Option (d):
When the rate of population growth is 1 percent, the rate of technological progress is 3 percent, the depreciation is 5 percent and the saving rate is 10 percent, the output per person will not grow at 4 percent. Thus option (d) is incorrect.
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1. Draw a well-labeled graph that illustrates the steady-state of the Solow model with population growth. Use the graph to find what happens to steady-state capital per worker and income per worker in response to each of the following exogenous changes.a. A change in consumer preferences increases the saving rate.b. A change in weather patterns increases the depreciation rate.c. Better birth-control methods reduce the rate of population growth.
Chapter 9 Solutions
MACROECONOMICS+SAPLING+6 M REEF HC>IC<
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