Exam 4: The Theory of Economic Growth

Each of the following is a factor in the economy's balanced growth equilibrium except

Each of the following is a factor in the economy's balanced growth equilibrium except

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

If the current level of output in the economy is $10 trillion a year, the current year's capital stock in the economy is $25 trillion, the savings rate is 20 percent and the rate of depreciation of capital stock is 3 percent, next year's capital stock will be _______.

When the capital-output ratio is at its steady state value, the total economy-wide capital stock is growing at the

If the labor force growth rate increases and the diminishing-returns-to-investment parameter decreases, output per worker will _________

A decrease in g (the growth rate of the efficiency of labor) _________ the steady-state capital-output ratio and ________ the output per worker in the long-run.

Total investment is equal to

The investment requirements of the economy are determined by

The capital-output ratio is equal to

A decrease in s (the saving-investment rate) _________ the steady-state capital-output ratio and________ the output per worker in the long-run.

When the capital-output ratio is at its steady state value

A level of the parameter of the Cobb-Douglas production equal to one means

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

If an economy is very productive

Net foreign savings is equal to

If the labor force growth rate increases and the diminishing-returns-to-investment parameter increases, output per worker will _________

In a steady-state balanced growth equilibrium,

The two broad groups in which we classify the factors that generate differences in economies' productive potential are

If the savings rate increases and the capital stock depreciation rate decreases, output per worker will_________