Question1

Ify =k, the country saves 10 percent of its output each year, and the steady-state level of capital per worker is 4, then the steady-state levels of output per worker and consumption per worker are:

Group of answer choices

2 and 3.6, respectively.

2 and 1.6, respectively.

2 and 3.2, respectively.

2 and 1.8, respectively.

Question 2

In the Solow growth model, for any given capital stock, the ______ determines how much output the economy produces, and the ______ determines the allocation of output between consumption and investment.

Group of answer choices

production function; saving rate.

production function; depreciation rate.

population growth rate; consumption rate.

population growth rate; saving rate.

Question 3

In a Solow model with population change,if output per worker (k) grows at a 5 percentand total capital stock (K) grows at a 3 percent , then population change by approximately:

Group of answer choices

2 percent.

3 percent.

8 percent.

-2 precent.

-8 percent.

Question 4

In the Solow model without technological change, the Golden Rule level of capital is the steady state that maximizes:

Group of answer choices

total consumption in the economy.

output per worker.

output per effective worker.

consumption per worker.

Question 5

Real GDP is the production of final goods and services valued at

Group of answer choices

expected future prices.

constant prices.

current year prices.

the ratio of current year prices to constant year prices.

Question 6

The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy:

saving rate (s) 0.30

depreciation rate () 0.15

steady-state capital per worker (k) 4

population growth rate (n) 0.05.

For Alpha economy, what is the steady-state growth rate of output per worker in Alpha?

Group of answer choices

10%.

0%.

20%.

15%.

Question 7

The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy:

saving rate (s) 0.30

depreciation rate () 0.15

steady-state capital per worker (k) 4

population growth rate (n) 0.05.

What is the steady-state growth rate of total output (Y)in Alpha?

Group of answer choices

0%.

5%.

20%.

15%.

10%.

Question 8

The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy:

saving rate (s) 0.30

depreciation rate () 0.15

steady-state capital per worker (k) 4

population growth rate (n) 0.05

steady-state output per worker 30,000.

What is the level of steady-state consumption per worker in Alpha?

Group of answer choices

zero.

9,000

21,000

1.4

Question 9

The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy:

saving rate (s) 0.30

depreciation rate () 0.15

steady-state capital per worker (k) 4

population growth rate (n) 0.05

steady-state output per worker 30,000.

What is the steady-state level of investment per worker in Alpha?

Group of answer choices

9,000.

zero, because in the steady state nothing change.

21,000.

4,500.

6,000.

Question 10

Assume that a country's per-worker production isy=k^1/2, whereyis output per worker andkis capital per worker. Assume also that 20 percent of capital depreciates per year. (Three is no change in population. Assume also that there is no technological change.)

If the saving rate (s) is 0.4, what is capital per worker in the steady state?

Group of answer choices

10 units of capital.

8 units of capital.

4 units of capital.

6 units of capital.

Question 11

Assume that a country's per-worker production isy=k^1/2, whereyis output per worker andkis capital per worker. Assume also that 20 percent of capital depreciates per year. (Three is no change in population. Assume also that there is no technological change.)

If the saving rate (s) is 0.4, what is the level of output per in the steady state?

Group of answer choices

2 units of output.

5 units of output.

4 units of output.

3 units of output.

Question 12

Assume that a country's per-worker production isy=k^1/2, whereyis output per worker andkis capital per worker. Assume also that 20 percent of capital depreciates per year. (Three is no change in population. Assume also that there is no technological change.)

If the saving rate (s) is 0.4, what is the consumption per worker in the steady state?

Group of answer choices

4 units of output.

3.2 units of output.

1.6 units of output.

2.4 units of output.