1. In the Solow model without exogenous technological change, per capita income will grow in the long termas long as the country has an initial level of capital below the steady state level of capital (k o < k )

TRUE OR FALSE?

2. In the Solow model without exogenous technological change, per capita income will growin the short termas long as the country has an initial level of capital below the steady state level of capital (k o < k )

TRUE OR FALSE?

3. What is the growth rate of the aggregate level of capital (K) -be aware that is different from the per capita level (k)- in steady state?

a) zero

b) equal to the depreciation rate of capital

c) equal to the population growth rate

d) it depends on the initial level of capital

4. Country X has an income of $10M. What is the growth rate at which it will have to grow to reach $30M in 50 years?

a) 0.022

b) 0.22

c) 1.22

d) 1.022

5. There is zero growth of income per capita at the steady state.

TRUE OR FALSE?

6. There is zero growth of income levels at the steady state.

TRUE OR FALSE?