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.TrueFalse(b) Assuming the population growth rate, savings rate, and total factor productivity are constant, the growth rate of aggregate economic variables equals thpopulation growth rate.TrueFalse(c) An increase in the savings rate always causes consumption per worker to decrease in the Solow growth model.TrueFalse(d) The Malthusian growth model predicts that the standard of living can increase in the long run only if population growth is reduced by governmentalpopulation control.TrueFalse(e) In the Solow growth model, the golden rule savings rate maximizes output per worker in the steady state.TrueFalse(f) A country that increases its savings rate will experience higher long-run growth in income.TrueFalse

The value difference between all goods and services produced during a certain time period and those…

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 population growth rate. True False (c) An increase in the savings rate always causes consumption per worker to decrease in the Solow growth model. O 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 (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 population growth rate. True False (c) An increase in the savings rate always causes consumption per worker to decrease in the Solow growth model. O 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(a) Two countries, Country A and Country B, are described by the Solow growth model. Both countries are identical, except that the rate of labor-augmenting technological progress is higher in A than in B. i. In which country is the steady-state growth rate of output per effective worker higher? ii. Does the Solow growth model predict that the two economies will converge to the same steady state? p (b) Based on the Solow growth model with population growth and labor-augmenting technological progress, explain how each of the following policies would affect the steady-state level and steady-state growth rate of total output per person: i. an increase in the government's budget deficit poits) inis) ii. grants to support research and development (c) Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. Assume the production function is now Y = AK. What happens to the growth rate of per capita GDP over time? (6pints)
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
An economy's production function as follows Y = 8 (K)¹/2 (EL)¹/2 If depreciation rate is 10%, population growth rate is 4%, tech progress grows 6%, and saving rate is 20%. a. b. C. d. e. f. Write production function in term of per effective worker variables. Find steady state capital per effective worker, output per effective worker, consumption per effective worker, investment per effective worker. Find growth rate of capital per worker and output per worker at steady state. Find growth rate of capital stock and total output at steady state. Propose policies to encourage long run growth of total output and living standard? Draw relevant graph for the above questions.
While increasing outplut levels have been a benefit of economic growth, what have been some of the challenges associated with the phenomenon of economic growth? Here consider the broad social and environmental implications that stem from economic growth. In your answer draw on relevant evidence and examples.
12. According to Solow's model of economic growth, what determines the growth rate of income per person for a nation that is not in its steady state? What determines the growth rate of income per person for a nation that is in its steady state? In what sense is technological progress necessary for sustained growth of income per person in Solow's model?
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Our simple growth model implies that Select one: a.countries with higher K/L ratios will have higher economic growth. b.increases in K/L increase Y/L but at a diminishing rate. c.capital has no impact on Y/L. d.there is little prospect of poor countries catching up with rich countries. In the past few years, several high profile celebrities have campaigned for debt relief for HIPC's (Highly Indebted Poor Countries). While debt relief can potentially play a useful role in poverty reduction there are also some possible downsides such as Select one: a.reducing a poor nations exports. b.increasing government deficits. c.encouraging further debt by setting up an expectation that future debts will also be forgiven. d.under cutting local markets for food and other commodities given as aid.