Exam 8: Growth,capital Accumulation

Which of the following can drive long-run economic growth in the Solow model?

Better ideas or technological knowledge causes:

Imagine an economy with production function Y = F(K)= and 400 units of capital.If the fraction of output invested in new capital increases from  = 0.2 to  = 0.5 and the depreciation rate is  = .05,what is the new steady-state amount of capital?

The "A" term in the production function Y = F(A,K,eL)represents which factor of production in the Solow growth model?

The production function can shift upward because of:

The growth rate of developed countries in the past century cannot be fully explained by the simple Solow model without advances in technology.

Countries on a "catching-up" growth path are growing primarily through:

An increase in the investment rate results in:

In the Solow model,when investment equals depreciation,the capital stock and output are constant.

The marginal product of capital diminishes with the addition of more and more capital.

In the context of the Solow model,new ideas shift both the production function and the investment function upward.

Which of the following statements correctly differentiates catching-up growth from cutting-edge growth?

If we hold ideas,education,and labor constant in the Solow model,then output (GDP)is a function of:

In the Solow model,an increase in investment leads to:

In the long run,catching-up growth:

In 2010,China's GDP per capita grew by approximately:

If the investment rate ()increases in the Solow model,other things held constant,then capital growth:

To maintain growth over very long periods of time,a country must come up with new ideas.

Imagine an economy with production function Y = F(K)= and 400 units of capital.If the fraction of output invested in new capital is  = 0.2,how much new capital will be created in the next period?

-(Figure: The Solow Model)If the production function shifts from Y₁ to Y₂ in the accompanying graph of the Solow model,then: