Exam 4: Working With the Solow Growth Model

Figure 4.1 Determinants of k/k -In Figure 4.1 the distance between s•(y/k) and s + n is the growth of capital per worker:

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:

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

In the Solow growth model in the long run or steady state, an increase in the labour input L(0) will,

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

Figure 4.1 Determinants of k/k -In Figure 4.1, if the initial amount of labour increases, then:

In the Solow growth model in the steady state the growth rate of capital per worker, k*, is:

Economies are said to have converged if they:

In the Solow growth model in the steady state the growth rate of output per worker, y*, is:

The Solow model of growth says that poorer economies should over time converge towards richer ones in terms of real output put worker.

Convergence of economies is the tendency according to the Solow growth model for:

What are the long run and short run effects to an increase in the labour input in the Solow growth model?

An increase in technology causes the real GDP per worker to increase during the transition to the steady-state.

In the Solow growth model, if technology, A, improves, then in the steady state:

Convergence will not happen if economies around the world have:

In the Solow growth model in the short run, an increase in the labour input L(0):

Figure 4.1 Determinants of k/k -In Figure 4.1, an increase in productivity:

If the saving rate increases, then the optimum level of capital per worker falls.

Convergence will not happen if economies around the world have: