In the Solow growth model with population growth, if the per-worker productionfunction is given by y = √k, the saving rate is 0. 3, the depreciation rate is0. 1, and the population growth rate n is 0.05, then the steady-state capital stockper worker (*) is:a) 6Ob) 4O c) 5d) 2 In the Solow growth model without population growth, when f(k) is drawn on agraph with increases in k noted along the horizontal axis, the slope of the curve f(k)denotes:a) the marginal product of labour.Ob) the marginal product of capital.c) output per worker.d) output per unit of capital.

According to the Solow model, once physical capital has increased to the point where depreciation…

In the Solow growth model with population growth, if the per-worker production function is given by y = √√k, the saving rate is 0. 3, the depreciation rate is 0. 1, and the population growth rate n is 0.05, then the steady-state capital stock per worker (k*) is: O a) 6 b) 4 O c) 5 d) 2

In the Solow growth model with population growth, if the per-worker production function is given by y = √√k, the saving rate is 0. 3, the depreciation rate is 0. 1, and the population growth rate n is 0.05, then the steady-state capital stock per worker (k*) is: O a) 6 b) 4 O c) 5 d) 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In the Solow growth model with population growth, if the per-worker production
function is given by y = √k, the saving rate is 0. 3, the depreciation rate is
0. 1, and the population growth rate n is 0.05, then the steady-state capital stock
per worker (*) is:
a) 6
Ob) 4
O c) 5
d) 2

In the Solow growth model without population growth, when f(k) is drawn on a
graph with increases in k noted along the horizontal axis, the slope of the curve f(k)
denotes:
a) the marginal product of labour.
Ob) the marginal product of capital.
c) output per worker.
d) output per unit of capital.

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