TRUE/FALSE (a) There exists a positive correlation between the rate of growth in real income per capita and the level of real income per capita. True O False (b) Assuming the population growth rate, savings rate, and total factor productivity are constant, the growth rate of aggregate economic variables equals population growth rate. True False (c) An increase in the savings rate always causes consumption per worker to decrease in the Solow growth model. Truo
TRUE/FALSE (a) There exists a positive correlation between the rate of growth in real income per capita and the level of real income per capita. True O False (b) Assuming the population growth rate, savings rate, and total factor productivity are constant, the growth rate of aggregate economic variables equals population growth rate. True False (c) An increase in the savings rate always causes consumption per worker to decrease in the Solow growth model. Truo
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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part D E F
Transcribed Image Text:TRUE/FALSE
(a) There exists a positive correlation between the rate of growth in real income per capita and the level of real income per capita.
True
False
(b) Assuming the population growth rate, savings rate, and total factor productivity are constant, the growth rate of aggregate economic variables equals th
population growth rate.
True
False
(c) An increase in the savings rate always causes consumption per worker to decrease in the Solow growth model.
True
False
(d) The Malthusian growth model predicts that the standard of living can increase in the long run only if population growth is reduced by governmental
population control.
True
False
(e) In the Solow growth model, the golden rule savings rate maximizes output per worker in the steady state.
True
False
(f) A country that increases its savings rate will experience higher long-run growth in income.
True
False
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