Please help me answer 20-25 **Questions on Economic Growth Models****20. In the textbook production model, the productivity parameter enters the production function with an exponent of one, while in the Solow model's equation for the steady-state stock of capital it is greater than one because:** - a. the endogenous level of the capital stock itself depends on productivity. - b. there is no productivity parameter in the production model. - c. the productivity measure is zero in the production model. - d. the productivity measure is negative in the Solow model. - e. the exogenous level of the capital stock itself depends on productivity.**21. The key difference between the Solow model and the production model is that the:** - a. Solow model endogenizes the process of capital accumulation. - b. production model endogenizes the process of capital accumulation. - c. Solow model uses different values for the capital share. - d. Solow model does not contain a productivity measure. - e. Solow model exogenizes the process of capital accumulation.**22. The production function, \( Y = \bar{A}K^aL^b \), exhibits constant returns to scale if and only if:** - a. \( a+b=1 \) - b. \( a+b=0 \) - c. \( a+b>0 \) - d. \( a+b>1 \) - e. \( a+b<1 \)**23. In the production model with CRS, aggregate output (Y) is _________ than/to the sum of payments to input factors.** - a. larger - b. smaller - c. equal**24. In the Solow growth model, an increase in the depreciation rate _________ steady-state investment.** - a. raises - b. decreases - c. does not affect**25. Consider a Solow economy where the per-worker production function is \( f(k) \). The investment rate is \( \bar{s} \) and the depreciation rate is \( \bar{d} \). The golden-rule capital stock, denoted \( k^* \), solves:** - a. \( f'(k^*) = 0 \) - b. \( f'(k^*) = \bar{d} \) -

Answered: In the textbook production model, the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Since the question you have posted consists of multiple questions, we will answer the first question for you. If you want any particular question to be answered, please specify the question number or post only that question.

Production Model is defined as a model that states that a specific set of resources are used to describe a good or product as a collection of components.

Solow Model is defined as an exogenous model of growth which states that any change in the output brings about a change in savings rate, population growth rate and rate of technology.

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