Exam 4: The Theory of Economic Growth

If n is %, g is 2%, is 3%, s is 37.5%, is 1/3, and E is $10000, then Y/L will equal approximately

In a steady-state balanced-growth equilibrium, each of the following is true except

If the savings rate increases and the diminishing-returns-to-investment parameter " decreases, output per worker will _________

The net flow of saving is equal to the amount of

The capital-output ratio will ________ if the saving rate increases and the rate of depreciation of the capital stock increases by the same percentage.

The parameter E in the Cobb-Douglas production function

If saving rate increases, with the labor force growth rate, capital stock depreciation rate, and growth rate of the efficiency of labor held constant,

Total savings in the economy is equal to

The parameter of the Cobb-Douglas production function

When there is no growth in the labor force nor in the efficiency of labor, the equilibrium condition in the Solow growth model is

The two driving forces leading to increases in capital intensity are the

If the parameter E of the Cobb-Douglas production function has a high value

The investment effort of the economy is determined by

A level of the parameter of the Cobb-Douglas production near one means

A level of the parameter of the Cobb-Douglas production near zero means

The parameter of the Cobb-Douglas production function is always a number

The capital-output ratio will ________ if the savings rate ________.

In economic growth economists look for a

If, in the Cobb-Douglas production, the value of E is $10000, is .4 and capital per worker is $125,000, then output per worker would be approximately

The capital-output ratio will ________ if n + g + _________.