Exam 12: Technological Progress and Growth

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital per effective worker (K/AN) is

Refer to the information above. Which of the following represents the level of investment needed to maintain constant capital per effective worker (K/AN) in this economy?

Assume the production function is represented by Y = F (K, AN) and the number of workers is constant. Now suppose the state of technology variable, A, increases by 6%. This implies that which of the following variables will also increase by 6%?

Assume that a fiscal policy action results in a decrease in the saving rate. This decrease in the saving rate will cause a decrease in which of the following once the economy reaches its new steady state equilibrium?

Which of the following best describes a situation where research is considered appropriable?

Graphically illustrate and explain the effects of an increase in the rate of technological progress on the Solow- Swan growth model. In your answer, you must clearly label all curves and the initial and final equilibria. In your answer, explain what happens to the rate of growth of output per worker and the rate of growth of output as the economy adjusts to this event.

Patent protection is important in affecting technological progress because it makes research and development:

Suppose output per worker in a country has grown at the same rate as technology for over many years. This country's growth would be described as:

Discuss the relative strengths of capital accumulation and technological progress in contributing to output growth rates in Australia during 1985- 2009. What are the long- run implications?

Refer to the information above. Which of the following represents the level of investment needed to maintain a constant capital stock (K) in this economy?

Refer to the information above. Which of the following represents the steady- state growth rate of output per worker in this economy?

Which of the following represents the fertility of research?

Let a represent labour's share of total output. Economic growth attributable to labour growth is represented by:

Use the following information to answer the question(s) below: 6 = 0.13 gA = 0.05 gN = 0.04 -Given the information above, the steady state rate of growth of Y/AN is:

Assume that an economy experiences both positive population growth and technological progress. In this economy, which of the following is constant when balanced growth is achieved?

The method of constructing a measure of technological progress relies on which of the following assumptions?

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the output per worker (Y/N) is

Which of the following best describes a situation where research is considered relatively fertile?

Explain what factors determine the slope of the required investment line.

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that: