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- (a) Distinguish between steady state rate of capital accumulation and golden Rule level of capital accumulation.Sınav gezintisi Soru 2 Chapter 8: Economic Growth I: Capital Accumulation and Population Growth Henüz 1 3 4. 6. cevaplanmadı 5,00 üzerinden Question: If the capital stock in the Solow growth is constant, the ....... determines the level of output 10 11 12 13 14 15 16 işaretlenmiş and the establishes the distribution of output between ...... and P Soruyu 19 20 işaretle O a. depreciation rate / population growth rate / wages/ profits. Uygulamayı bitir . Kalan süre 0:23:27 b. production function/ saving rate/ consumption/investment. O c. population growth rate / saving rate /wages /profits. Od. production function/ saving rate /wages/ profits. e. saving rate/ production function / consumption/investment. TURQUESTION 1 Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total population in an economy is equal to 1, depreciation rate is 5 percent and saving rate is 10 percent. Then the steady-state level of capital is about: a. 0.8 b. 1.6 c.1.3 d.2.8 e. 0.3Question 2 If a natural disaster destroys a large portion of a country's capital stock but the saving and depreciation rates are unchanged, the Solow model predicts that the economy will grow and eventually reach:a. A lower steady-state level of output than it would have before the disasterb. None of these answers is correctC. The same steady-state level of output as it would have before the disasterd. A higher steady-state level of output than it would have before the disaster e. Not enough information is given QUESTION 3 Suppose you are given the data for Brazil and Portugal. In Brazil, the saving rate is 0.1 and the depreciation rate is 0.1, while in Portugal saving rate is 0.2 and the…
- Assume that a country's per-worker production is y = k1/2, where y is output per worker and kis capital per worker. Assume also that 10 percent of capital depreciates per year (= 0.10) 2 andthere is no population growth or technological change.a. If the saving rate (s) is 0.4, what are capital per worker, production per worker, andconsumption per worker in the steady state?b. Solve for steady-state capital per worker, production per worker, and consumption perworker with s = 0.6.c. Solve for steady-state capital per worker, production per worker, and consumption perworker with s = 0.8.d. Is it possible to save too much? Why?Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total population in an economy is equal to 1, depreciation rate is 5 percent and saving rate is 10 percent. Then the steady-state level of capital is about: a. 0.3 b. 0.8 c. 2.8 d. 1.6 e. 1.3if a country does not have a large endowment of natural resources then they cannot achieve sustained economic growth true of false?
- Given a saving rate of 5%, a depreciation rate of 1%, and a production function in which y = k0.5where y is output per worker and k is capital per worker, calculate the steady state values forii. output per worker, iii. consumption per worker, iv. Calculate the golden rule steady state level of capital2. Effective conversion of new capital into a higher level of output requires structural, institutional, and attitudinal reforms. Do you agree or disagree with the statement?St Chapter 8: Economic Growth l: Capital Accumulation and Population Growth Question: The Solow model suggests that if.. exceeds. ., the capital stock will . and output will .... ... until the. . is achieved. a. depreciation / investment/ increase/ decline /steady state Uy Kal O b. investment / depreciation/increase /increase / the Golden Rule level depreciation /investment /decline/decline/ the Golden Rule level Pd investment / depreciation /increase /increase/steady state depreciation /investment / decline/increase /steady state rin buraya yazın I\
- Which of the following statements are correct? state which ones are definitely incorrect and why. a. Capital grows when investment is higher than depreciation b. The growth rate of capital increases when investment is higher than depreciation c. For a given rate of depreciation of capital, a rise in the ratio of investment to capital will raise the growth rate of capital d. There are no rich countries wth low investment ratios, and no poor countries with high investment ratios e. A country can only invest more than it saves if it borrows from abroad. f. The scatter diagram of capital output ratios vs investment rates does not show a perfect correlation. Therefore there is something wrong with the model of the way capital grows g. A country that increases its saving rate will be able to have more rapid growth of capital for as long as it maintains this higher savig rate h. A country that increases its saving rate will be able to have more rapid…3. Take the Malthus model absent technological change and capital with the following birth and death rate functions. Birth rate Death rate a. Plot the population growth rate function corresponding to the death rate and birth rate functions above. b. Find the Steady state consumption levels and population levels for this economy. c. Thomas Malthus had a very pessimistic view of the conditions of the human race in that he believed that any increase in the living standard due to a sudden decrease in the population would be temporary. This is indeed the prediction of the Malthus model we studied in class. Does the version of the Malthus Model in this question make the same prediction? Use graphs in your answer.1. Draw a well-labeled graph that illustrates the steady-state of the Solow model with population growth. Use the graph to find what happens to steady-state capital per worker and income per worker in response to each of the following exogenous changes.a. A change in consumer preferences increases the saving rate.b. A change in weather patterns increases the depreciation rate.c. Better birth-control methods reduce the rate of population growth.