Exam 4: Working With the Solow Growth Model

Convergence will not happen if economies around the world have:

In the Solow growth model, if the depreciation rate, , increases, then in the steady state:

When converging economies:

Convergence will not happen if economies around the world have:

Convergence will not happen if economies around the world have:

Figure 4.1 Determinants of k/k -In Figure 4.1, if the population growth rate increases, then:

In the revised version of the Solow growth model the optimal level of the capital stock per worker depends on:

What are the long and short run effects of an increase in technology, A, in the Solow growth model?

What are the short and long run effects of an increase in the saving rate in the Solow growth model?

In the revised version of the Solow growth model the optimal level of the capital stock per worker depends on:

Convergence will not happen if economies around the world have:

Figure 4.1 Determinants of k/k -In Figure 4.1, if the saving rate increase, then:

If the saving rate increases in the Solow growth model, then in the steady state the growth rate of capital per worker is:

In the Solow growth model, if labour input, L(0), increases, then in the steady state:

The data show a tendency of output per worker to converge:

Figure 4.1 Determinants of k/k -In Figure 4.1 if the saving rate increases, then

In the Solow growth model as a growing economy transitions to the steady state:

If the saving rate increases in the Solow growth model, then during the transition to the steady state:

Figure 4.1 Determinants of k/k -In Figure 4.1, an increase in the depreciation rate has the same effects as:

In the Solow growth model during the transition an increase in technology: