Question 1

What types of government policies can increase long-run living standards?

Accepted Answer

If,for some reason,the national saving r

Question 2

An increase in the growth rate of population in a steady-state economy would cause

Accepted Answer

A) a parallel shift upward in the investment line. 
B) a pivot up and to the left in the investment line. 
C) a pivot down and to the right in the investment line. 
D) a parallel shift downward in the investment line. 
A) a parallel shift upward in the investment line. 
B) a pivot up and to the left in the investment line. 
C) a pivot down and to the right in the investment line. 
D) a parallel shift downward in the investment line.

Question 3

How would each of the following changes affect the steady-state values of the capital-labor ratio,output per worker,and consumption per worker?
(a)A change in the composition of the capital stock raises the depreciation rate.
(b)A change in social mores lowers the population growth rate.
(c)Government tax policies change to encourage a higher saving rate.
(d)A supply shock reduces productivity sharply.

Accepted Answer

(a)The rise in d reduces the capital-lab

Question 4

If the steady-state capital-labor ratio is equal to the Golden Rule capital-labor ratio,then in the steady state

Accepted Answer

A) output per worker equals investment per worker. 
B) output per worker equals depreciation per worker. 
C) investment per worker is as large as possible. 
D) consumption per worker is as large as possible. 
A) output per worker equals investment per worker. 
B) output per worker equals depreciation per worker. 
C) investment per worker is as large as possible. 
D) consumption per worker is as large as possible.

Question 5

In the Solow model,if f(k)= 2k0.5,s = 0.1,n = 0.1,and d = 0.05,what is the value of f(k)at equilibrium?

Accepted Answer

A) 2/3 
B) 4/3 
C) 2 
D) 8/3 
A) 2/3 
B) 4/3 
C) 2 
D) 8/3

Question 6

The per-worker production function in the Solow model assumes

Accepted Answer

A) constant returns to scale and increasing marginal productivity of capital. 
B) constant returns to scale and diminishing marginal productivity of capital. 
C) increasing returns to scale and diminishing marginal productivity of capital. 
D) decreasing returns to scale and diminishing marginal productivity of capital. 
A) constant returns to scale and increasing marginal productivity of capital. 
B) constant returns to scale and diminishing marginal productivity of capital. 
C) increasing returns to scale and diminishing marginal productivity of capital. 
D) decreasing returns to scale and diminishing marginal productivity of capital.

Question 7

Endogenous growth theory attempts to

Accepted Answer

A) replace the Solow model with a model in which money growth plays a key role. 
B) explain how societies can more easily reach the "Golden Rule." 
C) show how population growth reduces capital and output. 
D) explain why productivity changes. 
A) replace the Solow model with a model in which money growth plays a key role. 
B) explain how societies can more easily reach the "Golden Rule." 
C) show how population growth reduces capital and output. 
D) explain why productivity changes.

Question 8

In the textbook model of endogenous growth,in equilibrium,output grows at the rate of

Accepted Answer

A) sA - d. 
B) n + d. 
C) K) 
D) 
A)  
A) sA - d. 
B) n + d. 
C) K) 
D) 
A)

Question 9

Steady-state consumption per worker is

Accepted Answer

A) larger in the short run than in the long run. 
B) less than steady-state investment per worker. 
C) less than steady-state saving per worker. 
D) steady-state production per worker minus steady state investment per worker. 
A) larger in the short run than in the long run. 
B) less than steady-state investment per worker. 
C) less than steady-state saving per worker. 
D) steady-state production per worker minus steady state investment per worker.

Question 10

An earthquake destroys a good portion of the capital stock.How would you expect this to affect the capital-labor ratio in the long run? There would be

Accepted Answer

A) a rightward movement along the saving-per-worker curve and an increase in the capital-labor ratio. 
B) no change in the long-run capital-labor ratio. 
C) a downward shift in the saving-per-worker curve and a decrease in the capital-labor ratio. 
D) a leftward movement along the saving-per-worker curve and a decrease in the capital-labor ratio. 
A) a rightward movement along the saving-per-worker curve and an increase in the capital-labor ratio. 
B) no change in the long-run capital-labor ratio. 
C) a downward shift in the saving-per-worker curve and a decrease in the capital-labor ratio. 
D) a leftward movement along the saving-per-worker curve and a decrease in the capital-labor ratio.

Question 11

A striking conclusion of the Solow model is that in the absence of productivity growth,in the long run

Accepted Answer

A) the economy reaches a steady state. 
B) consumption per worker equals the capital stock per worker. 
C) consumption per worker equals output per worker. 
D) consumption per worker equals investment per worker. 
A) the economy reaches a steady state. 
B) consumption per worker equals the capital stock per worker. 
C) consumption per worker equals output per worker. 
D) consumption per worker equals investment per worker.

What types of government policies can increase long-run living standards?

An increase in the growth rate of population in a steady-state economy would cause

If the steady-state capital-labor ratio is equal to the Golden Rule capital-labor ratio,then in the steady state

In the Solow model,if f(k)= 2k^0.5,s = 0.1,n = 0.1,and d = 0.05,what is the value of f(k)at equilibrium?

The per-worker production function in the Solow model assumes

Endogenous growth theory attempts to

In the textbook model of endogenous growth,in equilibrium,output grows at the rate of

Steady-state consumption per worker is

An earthquake destroys a good portion of the capital stock.How would you expect this to affect the capital-labor ratio in the long run? There would be

A striking conclusion of the Solow model is that in the absence of productivity growth,in the long run

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Productivity, output, and Employment

Consumption, saving, and Investment

Saving and Investment in the Open Economy

The Asset Market, money, and Prices

Business Cycles

The Is-Lmad-As Model

Classical Business Cycle Analysis

Keynesianism: the Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

Exam 6: Long-Run Economic Growth

What types of government policies can increase long-run living standards?

An increase in the growth rate of population in a steady-state economy would cause

If the steady-state capital-labor ratio is equal to the Golden Rule capital-labor ratio,then in the steady state

In the Solow model,if f(k)= 2k0.5,s = 0.1,n = 0.1,and d = 0.05,what is the value of f(k)at equilibrium?

The per-worker production function in the Solow model assumes

Endogenous growth theory attempts to

In the textbook model of endogenous growth,in equilibrium,output grows at the rate of

Steady-state consumption per worker is

An earthquake destroys a good portion of the capital stock.How would you expect this to affect the capital-labor ratio in the long run? There would be

A striking conclusion of the Solow model is that in the absence of productivity growth,in the long run

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Productivity, output, and Employment

Consumption, saving, and Investment

Saving and Investment in the Open Economy

The Asset Market, money, and Prices

Business Cycles

The Is-Lmad-As Model

Classical Business Cycle Analysis

Keynesianism: the Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

In the Solow model,if f(k)= 2k^0.5,s = 0.1,n = 0.1,and d = 0.05,what is the value of f(k)at equilibrium?