Question
Please help me with these multiple choice questions. Thank you! a) From 1991 to 2018, by how much more did output grow in Japan than
Please help me with these multiple choice questions. Thank you!
a) From 1991 to 2018, by how much more did output grow in Japan than in Canada?
- 10%
- 27%
- 36%
- 54%
- 66%
b) Assume a production function with constant returns to scale. The share of capital in production is 1/4 and the share of labour is 3/4. If both labour and capital grow at 1.6% and the rate of technological progress is 1.2%, what is the rate of growth of real output?
- 1.2%
- 1.6%
- 2.8%
- 3.2%
- 4.8%
c) In the neoclassical growth model, an increase in the rate of population growth will
- raise the growth rate of aggregate output
- increase the level of output per capita
- increase the steady-state capital-labour ratio
- lower the growth rate of aggregate output
- increase the level of per capita output and the growth rate of total output
d) Assume a Cobb-Douglas production function where the share of capital and labour is each 1/2. If the growth in total factor productivity is zero and labour and capital each grow by 2%, then
- output growth is 4% and the marginal product of capital is Y/K
- output growth is 2% and the marginal product of capital is Y/(2K)
- output growth is 2% and the marginal product of labour is (2Y)/L
- output growth is 1% and the marginal product of labour is Y/(2L)
- output growth is 1% and the marginal product of capital is (2Y)/K
e) For the Canadian economy, we can assume that
- output grows at the same rate as both capital and labour
- capital is a larger source of growth than labour
- labour is a larger source of growth than capital
- capital and labour both contribute equally to output growth
- labour force grows faster than the capital stock
f) An economy with a capital-labour ratio that is lower than the steady-state level can achieve a steady-state equilibrium at this lower capital-labour ratio only if
- the savings rate decreases
- the rate of depreciation decreases
- the rate of population growth decreases
- technological advances are made
- all of these options are possible
g) Assume a neoclassical growth model with constant returns to scale. Which of the following statements is TRUE?
- a declining population growth rate will increase per-capita income
- an increase in the savings rate will permanently increase the growth rate of output
- an increase in the depreciation rate will increase the capital-labour ratio
- technological advances will have no effect on the long-run growth rate of output
- all of these statements are true
h) The idea of a steady state is that
- the capital-labour ratio grows at a constant rate
- output per capita grows at a constant rate
- output, capital, and labour all grow at the same rate
- an increase in the savings rate will not affect the capital-labour ratio
- real output cannot grow
i) Assume a Cobb-Douglas production function where the share of labour is 0.7 and the share of capital is 0.3. If there is no technological progress, labour grows at 2%, and capital grows at 1.5%, then real output will grow by
- 0.45%
- 1.50%
- 1.85%
- 2.85%
- 3.05%
j) For a neoclassical growth model, which of the following statements is FALSE?
- an increase in the savings rate will increase the steady-state growth rate of aggregate output
- an increase in population growth will increase the steady-state growth rate of aggregate output
- an increase in population growth will reduce the steady-state level of income per capita
- if poor countries save at the same rate as rich countries and have access to the same technology, they will eventually catch up
- long-run growth results from improvements in technology
Thank you so much for your help!
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