Exam 6: The Sources of Growth and the Solow Model

If depreciation is less than investment ________.

Given the production function Y = A and fixed values for the saving rate and depreciation,if productivity is growing at an average rate of three percent,and the labor input grows at two percent,there is a unique growth rate of capital that is sustainable.That is,if the growth rate of capital is either higher or lower than this steady-state value,then it must eventually change,even if nothing else in the economy changes.Calculate this steady-state growth rate of capital,and explain why it alone is a sustainable rate.[Hint: Use the fact that the growth rates of output and capital per worker are 43% higher than the growth rate of productivity.]

If the contribution from capital and labor growth in a given economy equals 4.0 percent and output growth equals 6.4 percent over that same period of time,then productivity growth must equal ________.

Figure 6.1 -According to Figure 6.1,the period from 1996 to 2011 is particularly remarkable for the slow growth of ________.

A One-Child Policy was instituted in 1979 in ________.

In a steady-state economy with no population growth,capital per worker is 86,the saving rate is 25 percent,and the depreciation rate is 11 percent.The level of output per worker is ________.

If the contribution from capital growth equals 2 percent and the contribution from labor growth equals 4 percent,then GDP ________.

The Solow model suggests that economies with the same aggregate production function,ratio of workers to the total population and saving rates will ________.

Output per worker is 50,the saving rate is 15 percent,the population is growing at one percent,depreciation is 9 percent,and the capital-labor ratio is 80.Consumption per worker is ________.

If the contribution from capital growth equals 3 percent and the contribution from productivity growth equals 1.6 percent,GDP will grow by ________.

If output per worker in a steady state is $30,000,depreciation is 13%,the population growth rate is two percent,and the saving rate is 20%,what is the steady state capital-labor ratio?

Consumption per worker is 72,depreciation is 12.5%,and capital per worker is 64.Given the production function y = 20 ,show that this economy is in a steady state.If the saving rate should double,what is the new steady-state level of consumption per worker?

The impact of immigration on an economy's steady state capital-labor ratio is reduced to the extent that the immigrants tend to ________ than the native population.

The economic growth of the United States over the last half-century ________.

Solow Diagram -On the diagram above,show the new steady-state capital-labor ratio that results from a decrease in the saving rate.Can you say what has happened to the equilibrium level of consumption per worker?

Which of the following is the most difficult to measure? Changes in ________.

Comparing steady states,which of the following is a result of a permanent increase in the saving rate,but is not a consequence of a one-time increase in productivity?

The growth rate of which of the following is not a component of the growth accounting equation?

In the bathtub analogy,which of the following is a stock variable?

A higher rate of saving at the national level will,in the long-run ________.