11. In a steady state A. no hiring or firings are occurring B. the number of...
11. In a steady state
A. no hiring or firings are occurring
B. the number of people finding jobs equals the number of people losing jobs
C. the number of people finding jobs exceeds the number of people losing jobs
D. the number of people losing jobs exceeds the number of people finding jobs
12. Sectoral shifts
A. lead to wage rigidity
B. explain the payment of efficiency wages
C. depend on the level of the minimum wage
D. make frictional employment inevitable
13. The Solow growth model describes
A. how output is determined at a point in time
B. how output is determined with fixed amounts of capital and labor
C. how saving, population growth, and technological change affect output over time
D. the static allocation, production, and distribution of the economy's output
14. In the Solow growth model, the assumption of constant returns to scale means that
A. all the economies have the same amount of capital per worker
B. the steady-state level of output is constant regardless of the number of workers
C. the saving rate equals the constant rate of depreciation
D. the number of workers in an economy does not affect the relationship between output per worker and capital per worker
15. Two economies are identical except that the level of capital per worker is higher in Highland than in Lowland. The production function in both economies exhibit diminishing marginal product of capital. An extra unit of capital per worker increases output per worker
A. more in Highland
B. more in Lowland
C. by the same amount in Highland and Lowland
D. in Highland, but not in Lowland
Homework Answers
Question 11
In an economy, job creation and job losses happens simultaneously.
A number of people while a number of people are losing jobs.
However, when number of people finding jobs equals the number of people losing jobs then, in that case, steady state employment is said to be achieved.
Hence, the correct answer is the option (B)
Note -: As per the Chegg Answering Policy, when more than 1 question is posted then, in that case, 1 st question is answered with complete explanation.
Add Answer to:
11. In a steady state
A. no hiring or firings are occurring
B. the number of...
12. Sectoral shifts A. lead to wage rigidity B. explain the payment of efficiency wages C....
12. Sectoral shifts A. lead to wage rigidity B. explain the payment of efficiency wages C. depend on the level of the minimum wage D. make frictional employment inevitable 13. The Solow growth model describes A. how output is determined at a point in time B. how output is determined with fixed amounts of capital and labor C. how saving, population growth, and technological change affect output over time D. the static allocation, production, and distribution of the economy's output...
In the Solow growth model, the steady-state occurs when: (a) capital per worker is constant (b)...
In the Solow growth model, the steady-state occurs when: (a) capital per worker is constant (b) capital per worker is growing (c) capital per worker is falling (d) the saving rate = depreciation rate
In the Solow growth model without population growth, if an economy has a steady-state value of...
In the Solow growth model without population growth, if an economy has a steady-state value of the marginal product of capital (MPK) of 0.125, a depreciation rate of 0.1, and a saving rate of 0.225, then the steady-state capital stock per worker: Select one: a. is less than the Golden Rule level. O b. is greater than the Golden Rule level. c. could be either above or below the Golden Rule level. d. equals the Golden Rule level.
page 3 3. a. Given that a country at steady state engages in a cross border war with its neighbour and suffers significant infrastructure damage, illustrate and explain what will happen to the cou...
page 3 3. a. Given that a country at steady state engages in a cross border war with its neighbour and suffers significant infrastructure damage, illustrate and explain what will happen to the country's capital stock and output per worker if it maintains its 5 marks saving rate post-war. b. Given the scenario above, illustrate and explain what will happen to the country's capital stock and output per worker if it increases its saving rate after 10 years. 5 marks...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L)KoL1-a, economy 2 has a production function G(K, L)-aK(1-a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that it...
Problem 8: Consider the standard Solow model. The expression for output per worker and the dynamics...
Problem 8: Consider the standard Solow model. The expression for output per worker and the dynamics of capital per worker are given by the following expression: y = Ak" where δ > 0 is the depreciation rate of capital (a) Using a Solow diagram, what is the effect of an increase in productivity A on steady state capital? (label the axes and mark the initial and the final steady state level of capital) (b) Find an algebraic expression for the...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L) KL,economy 2 has a production function G(K, L) aK1 - a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show...
1. Consider a country that is initially in steady state. Suppose the saving rate increases. Moreover,...
1. Consider a country that is initially in steady state. Suppose the saving rate increases. Moreover, the population growth rate increases by 1% but the capital depreciation rate falls by 1%. According to the Solow–Swan model, the per capita capital stock increases, and the country moves to a new, higher steady state level of per capita income. Answer true, false, or uncertain. Please briefly explain your answer. 2. Consider the country of Solow, which is described by the Solow–Swan model....
(Steady state in the Solow model) Consider two economies identical in everything except the production function.
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function \(F(K, L)=K^{\alpha} L^{1-\alpha}\), economy 2 has a production function \(G(K, L)=\alpha K+(1-\alpha) L\). For both economies capital grows according to (1).a) Write output per worker as a function of capital per worker for both economies.b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that...
1. Let's review the setup of the Solow growth model with saving rate s, constant population...
1. Let's review the setup of the Solow growth model with saving rate s, constant population growth rate n, and constant technology growth rate g Kt+1(1-8)K Lt+ 1 = (1 + n) Et+1-(1+g)E a) b) c) What is the steady-state capital and output per effective worker? (5pts) Solve for the golden rule level of capital. What is the saving rate then? (5pts) Many health experts have argued that malnutrition leads to reduced work capacity. Suppose in the Solow model, this...
In the Solow growth model without population growth, if an economy has a steady-state value of the marginal product of capital (MPK) of 0.125, a depreciation rate of 0.1, and a saving rate of 0.225, then the steady-state capital stock per worker: Select one: a. is less than the Golden Rule level. O b. is greater than the Golden Rule level. c. could be either above or below the Golden Rule level. d. equals the Golden Rule level.
page 3 3. a. Given that a country at steady state engages in a cross border war with its neighbour and suffers significant infrastructure damage, illustrate and explain what will happen to the country's capital stock and output per worker if it maintains its 5 marks saving rate post-war. b. Given the scenario above, illustrate and explain what will happen to the country's capital stock and output per worker if it increases its saving rate after 10 years. 5 marks...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L)KoL1-a, economy 2 has a production function G(K, L)-aK(1-a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that it...
Problem 8: Consider the standard Solow model. The expression for output per worker and the dynamics of capital per worker are given by the following expression: y = Ak" where δ > 0 is the depreciation rate of capital (a) Using a Solow diagram, what is the effect of an increase in productivity A on steady state capital? (label the axes and mark the initial and the final steady state level of capital) (b) Find an algebraic expression for the...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L) KL,economy 2 has a production function G(K, L) aK1 - a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function \(F(K, L)=K^{\alpha} L^{1-\alpha}\), economy 2 has a production function \(G(K, L)=\alpha K+(1-\alpha) L\). For both economies capital grows according to (1).a) Write output per worker as a function of capital per worker for both economies.b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that...
1. Let's review the setup of the Solow growth model with saving rate s, constant population growth rate n, and constant technology growth rate g Kt+1(1-8)K Lt+ 1 = (1 + n) Et+1-(1+g)E a) b) c) What is the steady-state capital and output per effective worker? (5pts) Solve for the golden rule level of capital. What is the saving rate then? (5pts) Many health experts have argued that malnutrition leads to reduced work capacity. Suppose in the Solow model, this...
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