Question
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
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