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in the solow model with no population and technological progress what happens
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- If there is technological progress what will happen to the solow model ? Sketch itConsider two countries (A and B) identical in everything except that country A has higher capital. According to the Solow model, which of these statements is true? A Country A will grow as fast as country B and will end up with a higher equilibrium capitalK* B. Country A will grow faster than country B and will end up with the same equilibrium capital K C. Country A will grow as fast as country B and will end up with a lower equilibrium capital K* D. Country A will grow slower than country B and will end up with the same equilibrium capital K* cheik pieAccording to the Solow-Swan model, for a country that is initially in steady state, if the technology parameter A rises, then: the per capita capital stock initially increases, then returns to its initial steady state level the per capita capital stock decreases and the country moves to a new, lower steady state level of per capita income the per capita capital stock initially decreases, then returns to its initial steady state level O the per capita capital stock increases and the country moves to a new, higher steady state level of per capita income
- According the Harrod-Domar and Solow models, what should countries do if they want to grow?Using the Solow model diagram, illustrate what happens to the steady-state capital per worker and output per worker and output per worker when a country faces a positive technology stock.True or false Technological advancements is necessary for the economic growth in a country.
- Consistent with the data, the Solow model shows that there is correlation between the population growth rate and real GDP per capita. Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C a positive a negative zeroThe amount of education the typical person receives varies substantially among countries. Suppose you were to compare a country with a highly educated labor force and a country with a less educated labor force.Assume that education affects only the level of the efficiency of labor. Also assume that the countries are otherwise the same: they have the same saving rate, the same depreciation rate, the same population growthrate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. What would you predict for the following variables? a)The real wage.With regards to Solow-Swan Model in economics, what does exogenous growth mean and what factors can lead to growth in output according to the model?
- Countries A and B have the same rates of invest- ment, population growth, and depreciation. They also have the same levels of income per capita. Country A has a higher rate of growth than does Country B. According to the Solow model, which country has higher investment in human capital? Explain your answer.3) There are two countries, Anihc (country A) and Bapan (country B), with the same production function f (k) = 5k0.5. However, country A has saving rates of 0.2, depreciation rate of 0.2 and population growth of 0.2; while country B has saving rates of 0.1, depreciation rate of 0.15 and population growth of 0.05. Using the Solow model: a. Find the steady state capital-labor ratio for each country. b. Find the steady state output per worker, and the steady state consumption per worker for each country. c. Which country produces the most per capita? Which country consumes the most per capita?The amount of education the typical person receives varies substantially among countries. Suppose you were to compare a country with a highly educated labor force and a country with a less educated labor force.Assume that education affects only the level of the efficiency of labor. Also assume that the countries are otherwise the same: they have the same saving rate, the same depreciation rate, the same population growth rate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. What would you predict for the following variables?a. The rate of growth of total income.b. The level of income per worker.c. The real rental price of capital.