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