Question

please answer# 8 and 9

8. The equation y - Ak has what two important implications? Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher. b. Output per person tends to be lower when (1) the productivity parameter is higher and (2) the amount of capital per person is higher. c. Output per person tends to be higher when (1) the productivity parameter is lower and (2) the amount of capital per person is higher. Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is lower. The population tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher 9. The endogenous variables in the Solow model are: a the capital stock, labor and output consumption, investment, the capital stock, labor, and the saving rate consumption, investment, the capital stock, labor, and output productivity and the depreciation and saving rates the capital stock, abor, output, and the saving rato

Answer 1

8)y=Ā*k^1/3,where y is output per worker and k is capital per worker.

As Ā ( productivity) Increases ,y ( output per worker) Increases

As k Increases ,y Increases

So option A is correct

9)In solow growth model ,the endogenous variable refer to those variable that remain fixed over time.

So depreciation, saving rate and productivity parameters are assume to remain fixed over time.

So correct answer is OPTION D.