Pre-Lecture Quiz 5 - The Solow Growth Model eco 3203

In an exogenous growth model, growth is caused by

forces that are not explained by the model itself.

In Solow's exogenous growth model, the steady-state growth rate of capital can be increased by

higher population growth.

The slope of the output per worker function is equal to the

marginal product of capital.

If the savings rate falls in the Solow growth model

per worker output falls in the steady state.

In the Golden Rule steady state, the marginal product of capital is equal to the

population growth rate plus the depreciation rate.

The Solow growth model can account for

why richer countries have higher investment rates.

In the Solow growth model, long run growth in the standard of living is propelled by

technological change.

We can express the per-worker production function as a function of only per-worker capital thanks to

the constant returns to scale.

The Solow residual attempts to measure the amount of output not explained by

the direct contribution of labor and capital.

In Solow's exogenous growth model, the economy reaches a stable steady state because

the marginal return of capital is decreasing.