Exam 6: The Sources of Growth and the Solow Model

International evidence on the relationship of per capita income and the saving rate suggests that ________.

In a steady-state economy with no population growth,consumption per worker is 45,the saving rate is 25 percent,and the depreciation rate is 15 percent.The level of capital per worker is ________.

Other things the same,in the Solow model in the steady state,a higher rate of population growth ________ growth rate of output per worker.

Productivity growth can be measured ________.

In a closed economy ________.

The positive slope of the per-worker production function illustrates the relationship between per-worker output and ________.

If capital per-worker is rising,then ________.

Which of the following had the highest rate of growth during the period 1948-72?

Solow Diagram -On the diagram above,show the quantity of consumption per worker in equilibrium.If the actual capital per worker were greater than k*,would consumption be higher or lower than it is in equilibrium? Describe what would happen in an economy with such a high level of capital per worker.

Solow Diagram -The diagram above shows a steady state with a constant quantity of labor.Show on the graph how the steady state is determined if the labor force is growing at some constant rate.On the graph,show how to measure the change in consumption per worker that results from growth of the labor force.

The per-worker production function flattens out due to ________.

Evidence of a negative correlation between income per capita and population growth rates ________.

The loss of capital due to the wearing out of machines is known as ________.

Other things the same,in the Solow model in the steady state,a higher rate of population growth ________ the level of output per worker.

Output per worker = 4 1/3,the saving rate is 30 percent,and the depreciation rate is 0.133.Calculate the steady-state values of capital per worker and consumption per worker.

In the Solow model,the faster growth of output that results from an increase in the saving rate is temporary,because ________.

The Solow model implies that continuous growth in productivity at a rate of one percent will result in continuous growth of output per worker at a rate of 1.43%.Thus,if at a point in time output per worker is 270 and productivity rises by one percent,the resulting level of output per worker is ________.

Economic growth ________.

The label 'Asian Tigers' describes the following economies ________.

In the typical bathtub,the flow of water into the tub is controlled by a faucet independently of the quantity of water in the tub.How is the bathtub analogy of the steady state in the Solow model different? How does this difference relate to the phenomenon of convergence?