QUESTION 3 Assume a general savings rate 5, depreciation rate 5 and a production per worker...
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QUESTION 3 Assume a general savings rate 5, depreciation rate 5 and a production per worker y=kwhere 0< <1. Suppose the savings rate increases. What happens to the golden rule level of capital? increases decreases remains same indeterminate QUESTION 4 Consider an economy that is described by the production function Y-KL-The depreciation rate is 5 and the savings rate is s. How is the golden rule level of consumption per worker related to the level of consumption per worker obtained using the savings rate s? it depends on the value of s less or equal less greater or equal QUESTION 5 Consider an economy that is described by the production function Y=KL¹-The depreciation rate is 5 and the savings rate is 5. The government decides to increase the savings rate to the golden rule level. What is the immediate impact of the policy on investment per worker? increases decreases remains same ambiguous QUESTION 6 Consider an economy that is described by the production function Y=KL The savings rate iss, the depreciation rate is 5, the population growth rate is n and there is no technology growth. What is the growth rate of output per worker in steady state? 0 n 08 nig QUESTION 7 Consider an economy that is described by the production function Y-K (EL)¹-The depreciation rate is 5, and population growth rate is n. Technology grows at the rate g. The savings rate is s. Which one of the following is the growth rate of aggregate consumption (C) in the long run ? n 9 n+g 0 QUESTION 8 Many demographers predict that the US will have zero population growth in the 21st century, in contrast to a population growth of about 1% in the 20th century. Using the growth model and assuming that there is no technological progress, how will this change affect the long run level of output per worker Y/L? Increases decreases O remains same indeterminate QUESTION 3 Assume a general savings rate 5, depreciation rate 5 and a production per worker y=kwhere 0< <1. Suppose the savings rate increases. What happens to the golden rule level of capital? increases decreases remains same indeterminate QUESTION 4 Consider an economy that is described by the production function Y-KL-The depreciation rate is 5 and the savings rate is s. How is the golden rule level of consumption per worker related to the level of consumption per worker obtained using the savings rate s? it depends on the value of s less or equal less greater or equal QUESTION 5 Consider an economy that is described by the production function Y=KL¹-The depreciation rate is 5 and the savings rate is 5. The government decides to increase the savings rate to the golden rule level. What is the immediate impact of the policy on investment per worker? increases decreases remains same ambiguous QUESTION 6 Consider an economy that is described by the production function Y=KL The savings rate iss, the depreciation rate is 5, the population growth rate is n and there is no technology growth. What is the growth rate of output per worker in steady state? 0 n 08 nig QUESTION 7 Consider an economy that is described by the production function Y-K (EL)¹-The depreciation rate is 5, and population growth rate is n. Technology grows at the rate g. The savings rate is s. Which one of the following is the growth rate of aggregate consumption (C) in the long run ? n 9 n+g 0 QUESTION 8 Many demographers predict that the US will have zero population growth in the 21st century, in contrast to a population growth of about 1% in the 20th century. Using the growth model and assuming that there is no technological progress, how will this change affect the long run level of output per worker Y/L? Increases decreases O remains same indeterminate
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3 increases The golden rule level of capital would increase When the savings rate increases the amount of capital available to invest increases This results in a higher level of capital per worker and ... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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