Exam 3: Introduction to Economic Growth

Depreciation of the capital stock occurs due to:

The Solow growth model shows that the growth rate of real GDP per worker depends on:

If there are 120 machines in an economy and the depreciation rate is 10% per year, then next year there are:

Growth accounting shows that economic growth depends on:

During the transition to the steady state in the Solow growth model:

In the Solow growth model the optimal capital to labour ratio, K/L, is where:

The labour force participation rate is:

The marginal product of labour is:

A in the production function Y = A • F(K,L) is:

In the Solow growth model the economy reaches the optimal k*:

Diminishing returns to labour implies that eventually the marginal product of labour will become negative.

Among the assumptions made about the production function Y = A • (K,L) is:

During the transition to the steady state in the Solow growth model:

The marginal product of capital is how much output changes when capital increases by one unit.

If there are 120 machines in an economy and the depreciation rate is 5% per year, then:

The Solow growth model assumes unemployment is:

World growth data shows that from 1960 to 2011:

For the production function Y = A • F(K,L) constant returns to scale means:

The Solow growth model shows that the growth rate of real GDP per worker depends on:

Growth accounting shows that economic growth depends on: