The solow growth model does a pretty good job of explaining which of the following?
The solow growth model does a pretty good job of explaining which of the following?
differences in deficit-GDP ratios among countries
differences in savings rates between countries
differences in output-labor ratios between countries
differences in capital-labor ratio among countries
Homework Answers
solow growth model does a pretty good job of explaining
Solution: the correct one will be
difference in capital -labor ratio among countries
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The solow growth model does a pretty good job of explaining which of the following?
In the Solow Model, capital is subject to _____________________. So as you add additional units of...
In the Solow Model, capital is subject to _____________________. So as you add additional units of capital to other fixed resources, there comes a point where more capital does not increase output as much as it did before. A) increasing returns B) the endowment effect C) diminishing returns 2) The Solow Model implies that countries with smaller initial capital stocks should grow rapidly. This implies that: A) poorer countries should eventually “catch-up” to richer countries (conditional convergence) B) poorer countries...
Regarding the Solow Growth Model, which of the following plays the largest role in creating sustained...
Regarding the Solow Growth Model, which of the following plays the largest role in creating sustained high growth rates? An increase in the savings rate an increase in the capital-labor ratio an increase in investment improvements in total factor productivity
1. Explain why the Solow model with population growth and human capital helps to better understand...
1. Explain why the Solow model with population growth and human capital helps to better understand the differences in growth, the catch-up phenomenon for developing countries and differences in GDP between countries. Also give an example of phenomenon that the model cannot explain.
True and False 1 When applied to real-world data, the Solow model does pretty well in...
True and False 1 When applied to real-world data, the Solow model does pretty well in explaining how amounts of capital and labor can impact aggregate production. 2 Two countries with the same Gini coefficient have the same Lorenz curve. 3 For risk averse individuals, having a greater ability to do consumption smoothing means they are more likely to choose profitable but risky activities.
1. Exercise 1. Predicting steady states and growth rates from Solow Model In this exercise, assume...
1. Exercise 1. Predicting steady states and growth rates from Solow Model In this exercise, assume a, -1/3. Answer the following questions using the Solow model without population growth a) First, assuming no differences in TFP. Assume that countries are in steady state. Following the Solow model, use the data in the table to predict the ratio of per capita GDP in each country relative to that in the US. Data Data Data Countries Saving rate Model (assume A =...
1. Exercise 1. Predicting steady states and growth rates from Solow Model In this exercise, assume a = 1/3. Answer...
1. Exercise 1. Predicting steady states and growth rates from Solow Model In this exercise, assume a = 1/3. Answer the following questions using the Solow model without population growth. a) First, assuming no differences in TFP. Assume that countries are in steady state. Following the Solow model, use the data in the table to predict the ratio of per capita GDP in each country relative to that in the US. Data Data Data Model (assume A = Aus) predicted...
please solve these 4 parts. will leave good review thanks! Problem 3: Solow Model with No...
please solve these 4 parts. will leave good review thanks!
Problem 3: Solow Model with No Technological Change Assume that we live in an imaginary world where there are two countries: Cocoloco and Sambapati. These two countries have the same population size, population growth, depreciation rate and production function. But Sambapati has a larger capital stock than Cocoloco. Output in both countries is produced according to the following constant-returns-to-scale production function that lies at the heart of the standard Solow...
1. Consider the simple version of the Solow Growth Model discussed in class summarized by these...
1. Consider the simple version of the Solow Growth Model discussed in class summarized by these four equations: Consumers save a fraction s of output: 1 = sy Capital grows as follows: K' = 1 + (1 - 8)K Firms use capital to make output: Y = AK 0.3 There is no government or trade: Y = C+/ where Y is GDP, / is investment, C is consumption, s is the savings rate, K is the capital stock this year,...
Just 5-8 1 Analytics of the Solow Model In the Solow economy, people consume a good...
Just 5-8
1 Analytics of the Solow Model In the Solow economy, people consume a good that firms produce with technology Y (which we assume to be constant) and f is a Cobb-Douglas production function Af (K, L), where A is TFP f(K, L) KL-a Here K is the stock of capital, which depreciates at rate δ E (0, 1) per period, and L is the labor force, which grows exogenously at rate n > 0. Here employment is always...
In the Solow model with a positive rate of population growth n and technological progress z,...
In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of total real output Y grows at the rate: a. n. b. zero. c. z. d. n + z. In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of per worker real output y grows at the rate: a. n. b. zero. c. z. d. n + z. In...
1. Exercise 1. Predicting steady states and growth rates from Solow Model In this exercise, assume a, -1/3. Answer the following questions using the Solow model without population growth a) First, assuming no differences in TFP. Assume that countries are in steady state. Following the Solow model, use the data in the table to predict the ratio of per capita GDP in each country relative to that in the US. Data Data Data Countries Saving rate Model (assume A =...
1. Exercise 1. Predicting steady states and growth rates from Solow Model In this exercise, assume a = 1/3. Answer the following questions using the Solow model without population growth. a) First, assuming no differences in TFP. Assume that countries are in steady state. Following the Solow model, use the data in the table to predict the ratio of per capita GDP in each country relative to that in the US. Data Data Data Model (assume A = Aus) predicted...
please solve these 4 parts. will leave good review thanks!
Problem 3: Solow Model with No Technological Change Assume that we live in an imaginary world where there are two countries: Cocoloco and Sambapati. These two countries have the same population size, population growth, depreciation rate and production function. But Sambapati has a larger capital stock than Cocoloco. Output in both countries is produced according to the following constant-returns-to-scale production function that lies at the heart of the standard Solow...
1. Consider the simple version of the Solow Growth Model discussed in class summarized by these four equations: Consumers save a fraction s of output: 1 = sy Capital grows as follows: K' = 1 + (1 - 8)K Firms use capital to make output: Y = AK 0.3 There is no government or trade: Y = C+/ where Y is GDP, / is investment, C is consumption, s is the savings rate, K is the capital stock this year,...
Just 5-8
1 Analytics of the Solow Model In the Solow economy, people consume a good that firms produce with technology Y (which we assume to be constant) and f is a Cobb-Douglas production function Af (K, L), where A is TFP f(K, L) KL-a Here K is the stock of capital, which depreciates at rate δ E (0, 1) per period, and L is the labor force, which grows exogenously at rate n > 0. Here employment is always...
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