Exam 3: Growth and accumulation

Assume a Cobb-Douglas production function, where the share of labor (N) and capital (K) is each 1/2 and A = 1.If the growth rate of labor is n = 0.06, the rate of depreciation is d = 0.04, and the savings rate is s = 0.2, what is the value of the steady-state capital-labor ratio?

For the U.S.economy, we can assume that

According to the neoclassical growth model, a one-time technological advance will

In the neoclassical growth model, if the capital-labor ratio is below the (optimal) steady-state level, we should expect that

According to Solow's estimate, out of the average annual economic growth rate of 2.9% for the U.S.from 1909 to 1949, how much was attributable to the accumulation of capital?

In the neoclassical growth model, an increase in the rate of population growth will

Which of the following is NOT a source of long-term output growth?

Assume a neoclassical growth model with constant returns to scale.Which of the following statements is TRUE?

If we assume a Cobb-Douglas production function, where the share of capital is 0.25 and the share of labor is 0.75, then the marginal product of labor is equal to

Assume a production function with constant returns to scale.Labor's share of income is 0.7 and capital's share is 0.3.If labor grows at 4% and capital grows at 3%, how many years would it take to double the current level of output if no technological advances are made?

The steady state is defined as a long-run equilibrium at which capital, labor, and output all grow at the same rate.To be in a steady state in a neoclassical model, which of the following equations has to be satisfied?

Assume a Cobb-Douglas production function where the share of capital and labor is each 1/2.If the growth in total factor productivity is zero and labor and capital each grow by 2%, then

Which of the following is FALSE?

Which of the following countries had the lowest ratio of investment to GDP in 1992?

In the neoclassical growth model, an increase in the savings rate

The golden-rule capital stock (k**) corresponds to

If we assume a Cobb-Douglas production function where the share of capital is equal to 0.2 and the share of labor is equal to 0.8, then the marginal product of capital is equal to

When current saving and investment are just enough to equip new entrants into the labor force with the same amount of capital that the average person already in the work force uses, then

Which of the following economists contributed greatly to neoclassical growth theory in the 1950s and 1960s?

For a neoclassical growth model, which of the following statements is FALSE?