Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with the following multiple choice questions. a). The notion of conditional convergence states that two countries that have the same population growth

Please help me with the following multiple choice questions.

a). The notion of conditional convergence states that two countries that have the same population growth and access to the same level of technology will reach a steady-state equilibrium at

  • different levels of output but the same growth rate, if their savings rates are different
  • different levels of output and different economic growth rates if their savings rates are different
  • the same level of output and the same economic growth rate, even if their savings rates are different
  • the same level of output but different economic growth rates if their savings rates are different
  • the same level of output and the same economic growth rate if their savings rates are the same but their rates of depreciation differ

b). Between 1966 and 1990, all four "Asian Tigers" achieved economic growth mostly through

  • hard work and sacrifice
  • protecting domestic industries through tariffs
  • substantially increasing growth in total factor productivity
  • controlling population growth
  • a large degree of government intervention

c). Assume an endogenous growth model with labour augmenting technology. The production function is Y = F(K,AN) with A = 2(K/N), so y = 2k. If the savings rate is s = 0.05 and there is neither population growth nor depreciation of capital, what is the growth rate of output?

  • 0%
  • 2.5%
  • 5%
  • 10%
  • 12.5%

d). Assume an endogenous growth model with labour augmenting technology. The production function is Y = F(K,AN), where A = 2(K/N) such that y = 2k. If the savings rate is s = 0.06, the rate of population growth is n = 0.05, and the rate of depreciation is d = 0.04, then the growth rate of real output per capita is

  • 1%
  • 3%
  • 5%
  • 6%
  • 9%

e). Assume India's income level is now roughly 15% of that of Canada. India is growing at 2% annually. Assuming there is no change in the savings rates and the levels of technology of these two countries, how many years will it take for India to reach 30% of the Canada's current income level?

  • 10
  • 20
  • 25
  • 35
  • 50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics The Exploration & Analysis Of Data

Authors: Roxy Peck, Jay L. Devore

7th Edition

0840058012, 978-0840058010

Students also viewed these Economics questions

Question

Who is considered the the prototype of the romantic ballerina?

Answered: 1 week ago