Question: Hi! Could you please help me with this multiple choice questions? 12. Suppose that in the steady state of the Solow growth model with population

Hi! Could you please help me with this multiple choice questions?

Hi! Could you please help me with this multiple choice questions? 12.

12. Suppose that in the steady state of the Solow growth model with population growth, current saving rate s is smaller than the saving rate that supports golden rule level of capital, Saw. Then a. Current steady state capital per worker (*> k*gour b. Current steady state consumption per worker cec"gold c. Current steady state (MPK)* > (MPK)*gold. d. Both b and c Answer: 13. Consider a Solow model with population growth. Let the per capita production function bey=/()=43. If savings rate, 8 0.4, depreciation rate, 6 0.1 and population growth rate, "=0.3, the steady state level of per capita capital is a. I b. 4/9 c. 1/4 d. 3/2 Answer: 14. Which of the following statements is (are) true? a. The Solow model predicts that the only source of sustained improvements in living standards (i.e., growth in per capita income) over long periods of time is higher saving rate. b. The Solow model predicts that the only source of sustained improvements in living standards (i.e., growth in per capita income) over long periods of time is technological progress. c. Both a. and b. d. None of the above. Answer: 15. Consider a basic Solow model (without population growth and with no technological progress). Let the per capita production function be y=f(k)=". Let the savings rate, s=0.2, and the depreciation rate. 6 0.1. Then the golden rule level of capital per capita in this economy is a. 25 b. 1.56 c. 0.40 d. 0.64

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