Exam 12: Technological Progress and Growth

Assume the economy has achieved the balanced growth steady state. Explain what factors determine the rates of growth of each of the following variables when balanced growth is achieved: output per effective worker, capital per effective worker, output per worker, output, and consumption per worker.

Use the information below to answer the following question(s): 1() the rate of depreciation is 14% per year, 2() the population growth rate is 4% per year, and 3() the growth rate of technology is 5% per year. -Refer to the information above. Which of the following equals the annual growth rate of "effective labour" in the steady state in this economy?

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 output per worker 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?

Which of the following will increase the steady- state growth rate of capital?

Convergence in output growth between less advanced and advanced countries is attributable to: