Exam 7: Economic Growth: Malthus and Solow

In Solow's model of economic growth, suppose that s represents the savings rate, z represents total factor productivity, k represents the level of capital per worker, and f(k)represents the per worker production function. Also suppose that n represents the population growth rate and d represents the depreciation rate of capital. The equilibrium level of capital per worker, k*, will satisfy the equation

The Malthusian model performs poorly in explaining economic growth after the

Rates of growth of real per capita income are most alike amongst

Malthus was too pessimistic because he did not foresee the effects of

Total factor productivity can be influenced by

In an endogenous growth model, growth is caused by

In the Solow growth model

Long-run growth in the standard of living in the Solow growth model is explained by

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

The Solow model suggests that, to improve a country's standard of living in the long run,

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years, then GDP would be ________% higher after 100 years than it would have been otherwise.

The biggest contribution to real Canadian GDP growth in the 1970s was due to growth in

Which feature of the data can the Solow growth model not replicate?

The slope of the output per worker function is equal to the

When capital is accumulated at the rate that maximizes consumption per worker in the steady state, the marginal product of capital is equal to the

In the Malthusian model, the steady state effects of an increase in z are to

If the savings rate increases in the Solow growth model

Countries in which a relatively small fraction of output is channeled into investment tend to have a

Growth accounting, popularized by Robert Solow, attempts to attribute a change in aggregate output

In the Malthusian model, capital in the production function is replaced by