Exam 11: Saving, capital Accumulation, and Output

Suppose depreciation per worker is less than saving per worker.Given this situation,explain what will happen to each of the following variables over time: capital per worker,output per worker,saving per worker,and consumption per worker.

If endogenous growth models are correct,a lower rate of growth in the long run could occur as a result of which of the following?

Which of the following will likely cause a reduction in output per worker?

In the absence of technological progress,we know with certainty that an decrease in the saving rate will cause which of the following?

Suppose an economy experience a 4% increase in each of the following variables: N,K,and H (human capital).Given this information,we know with certainty that

Suppose there are two countries that are identical in every way with the following exception: Country A has a higher saving rate than country B.Given this information,we know with certainty that

Explain the two relations that determine the evolution of output in the long run.

Suppose the saving rate is initially greater than the golden rule saving rate.We know with certainty that a reduction in the saving rate will cause

Suppose two countries are identical in every way with the following exception.Economy A has a greater quantity of human capital than economy B.Given this information,we know with certainty that

Suppose there is a reduction in the saving rate.Explain what effect this will have on output,output per worker,the rate of growth of output,and the rate of growth of output per worker.

Suppose two countries are identical in every way with the following exception.Economy A has a higher saving rate than economy B.Given this information,we know with certainty that

An increase in the saving rate will not affect which of the following variables in the long run?

Suppose policy makers wish to increase steady state consumption per worker.Explain what must happen to the saving rate to achieve this objective.

Suppose the economy is initially in the steady state.An increase in the depreciation rate (δ)will cause

When the economy is in the steady state,we know with certainty that

Suppose there is an increase in the saving rate.Explain what effect this will have on output,output per worker,the rate of growth of output,and the rate of growth of output per worker.

Suppose the economy is initially in the steady state.A reduction in the depreciation rate (δ)will cause

In the absence of technological progress,which of the following remains constant in the steady state equilibrium?

Which of the following represents the change in the capital stock?

Suppose there are two countries that are identical in every way with the following exception: Country A has a lower depreciation rate (δ)than country B.Given this information,we know with certainty that