Macro Chapter 6

During 2009​ India's technological growth​ (Solow residual) was 3​%. The growth rates of the capital and labor input stocks were 2​% in both cases.

1st. add two numbers 2. answer of number 1 - the second number given

In the Solow growth​ model, which of the following variables is​ exogenous?

All of the above are exogenous

In the Solow growth​ model, which of the following variables is not​ endogenous?

Total factor productivity

Because of the gains from higher saving​ rates, countries should aim for a​ 95% saving rate.

false

Beginning from a steady state in the Solow growth​ model, which of the following does not occur when there is an increase in the saving​ rate?

An increase in the saving rate will cause a permanent increase in the growth rate of capital.

Assume that low standards of living​ (i.e., low​ capital-labor ratio, in​ Solow's model​ terms) are the reason as to why some countries exhibit high fertility rates. Which of the following statements does not represent an effect from population control policies established to reduce fertility rates in countries with low standards of​ living?

Countries that have created population control policies have then experienced rapid growth in output.

One of the most​ well-known population control policies is the one implemented by China since the late​ 1970s: one-child policy. This policy has been dubbed a​ success, since fertility rates drop by a considerable amount.​ (You can check the following article printed in the Wall Street Journal ​"China's One Child​ Mistake," September​ 17, 2007, found at​ http://online.wsj.com/article/SB118997971938828979.html.) Which of the following is not a side effect of such a​ policy?

The lower growth rate of population definitely causes higher incomes per capita.

Suppose two countries have the same growth rates of the capital and labor input stocks. These factors contribute 3 percentage points to their respective​ countries' total output growth rates. Output growth rates are 4.5​% for country 1 and 6​% for country 2. Which of the following is the most likely explanation for the difference in total output growth between these two​ countries?

The two countries have differences in the amount of technology or productivity growth they are experiencing.

Based on the Solow​ model's conclusions about population​ growth, the effects of additional immigration​ (ceteris paribus) will cause a​ country's

aggregate output level to increase while decreasing the​ country's capital-labor ratio.

Consider the effects of an increase in the saving rate in the United States​ capital-labor ratio, according to the Solow model. The immediate effect of a saving rate increase would

begin to increase the​ capital-labor ratio, not immediately increase output per​ worker, and reduce consumption per worker.

In the per worker production​ function A​ technology is considered to be

exogenous

The​ long-run effect of a saving rate increase would

increase the level of capital per worker and increase the level of output per worker.

In the per worker production​ function, which of the following does not determine the level of output per​ worker?

taxes