Please not copy an answer from other website (that was wrong)

1) In the neoclassical growth model, an increase in the savings rate

a. raises the steady-state level of output.

b. lowers the steady-state level of output.

c. raises the long-term economic growth rate.

d. have no impact either on the steady state level of output per capita or on the long-term economic growth.

2) If two countries have the same aggregate production function, rate of technological growth, and savings rate, then

a. they will always have the same per-capita income

b. the country with the higher rate of population growth will have a higher per-capita income

c. the country with the lower rate of population growth will have a higher per-capita income

d. the country with the highest depreciation rate will have the highest per-capita income

3) A neoclassical growth model would predict that if the rates of both population growth and saving increase, then the steady-state capital-labor ratio will

a. increase

b. decrease

c. stay the same

d. most likely change but we cannot say for sure how

4) Which of the following statements is FALSE?

a) endogenous growth theory relies on constant returns to scale of capital alone to generate ongoing growth.

b) endogenous growth theory predicts that an increase in population growth will always lead to an increase in the overall growth rate.

c) the microeconomics underlying endogenous growth theory emphasizes the existence of substantial external returns to capital.

d) endogenous growth theory predicts that a high savings rate can generate a high growth rate.

5) Assume an endogenous growth model with labor augmenting technology. The production function is Y = F(K,AN), with A = 2(K/N) such that y = 2k. If the savings rate is s = 0.08, the rate of population growth is n = 0.03, and the rate of depreciation is d = 0.04, what is the growth rate of output per capita?

a) 1%

b) 3%

c) 4%

d) 9%