Exam 6: Long-Run Economic Growth

The computerization of police departments throughout the country has greatly reduced the crime rate.What macroeconomic variable is likely to be directly affected by this change?

In the Solow model,if saving per worker initially exceeds investment per worker,

Over the past year,output grew 5%,capital grew 5%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.5 and 0.5,respectively,how much did productivity grow?

Steady state consumption per worker is

Which of the following is not an example of human capital formation?

In the long run,a reduction in productivity will cause

A country has the per-worker production function yt = 6, where yt is output per worker and kt is the capital-labor ratio.The depreciation rate is 0.1 and the population growth rate is 0.1.The saving function is St = 0.1Yt, where St is total national saving and Yt is total output. (a)What is the steady-state value of capital-labor ratio? (b)What is the steady-state value of output per worker? (c)What is the steady-state value of consumption per worker?

An increase in population growth will lead to a ________ in the steady-state capital-labor ratio and a ________ in output per worker.

Suppose the current level of output is 5000 and the elasticity of output with respect to labor is 0.7.A 10% increase in labor would increase the current level of output to

Over the past year,output grew 6%,capital grew 2%,and labor grew 4%.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,how much did productivity grow?

In the Solow model,if f(k)= 2k0.5,s = 0.1,n = 0.1,and d = 0.05,what is the value of f(k)at equilibrium?

Total factor productivity growth is that part of economic growth due to

Suppose the current level of output is 5000.A 10% increase in productivity would increase the current level of output to

In the long run,an increase in the saving rate in a steady-state economy will cause

Over the past year,an economy's labor supply increased from 100 to 102,its capital stock increased from 1000 to 1030,and its output increased from 500 to 525.All measurements are in real terms.Calculate the contributions to economic growth of growth in capital,labor,and productivity if aK = 0.2 and aN = 0.8.

Describe the main ideas of endogenous growth theory.What does it have to say about the role of government in economic growth?

A decrease in population growth will lead to a ________ in the steady-state capital-labor ratio and a ________ in output per worker.

In the Solow model,if productivity doesn't change,

In the textbook model of endogenous growth,in equilibrium,output grows at the rate of

Over the past year,output grew 4%,capital grew 2%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,how much did productivity grow?