Q2

About the AK model is true:

Select one:

a.

Capital does not contribute to any technological progress.

b.

The model allows us to have long periods of positive growth rates.

c.

Saving rates are constant and determine outside the model.

d.

The main objective of the model is maximize the capital trajectory.

e.

The production function has constant returns of scale to allow convergence.

Question3

Which are the main consequences when the Verdoorm coefficient is equal to zero, i.e.:

Select one or more:

a.

The Verdoorm law change to be:.

b.

The relative prices remain constant, i.e..

c.

The growth rate of labor productivity is fully explained by the natural growth rate of labor productivity without any feedback of the output growth rate.

d.

The effect of foreign output is now defined as:.

e.

The mark-up has no effect over the output growth rate.

Question4

Assuming that the Verdoorm coefficient is 1.3,, the elasticity income-demand of the imports is equal to 0.51, the elasticity income-demand of the exports is equal to 0.43, and the elasticity price-demand of exports equal to -0.3. Calculate the increment on the output growth rate due to an increment of the growth rate of nominal salaries in 0.99.

Answer:

Question5

Respect to the Barbosa-Filho (1999) model, is false:

Select one:

a.

The capital stops to accelerates when.

b.

The highest acceleration of capital is done when.

c.

The capital decelerates when.

d.

The capital accelerates for any value between.

e.

Positive growth rates of investment generates acceleration of the capital for rates below.

Question 6

Under the Thirlwall model. Assuming that the Verdoorm coefficient is 0.8,, the elasticity price - demand of the export is equal to -0.8, the elasticity income - demand of the imports is equal to 0.8, and the elasticity income - demand of exports is equal to 1.21. Calculate the effect of an increment in the growth rate of nominal wage equal to 0.11 over the output growth rate. (Note: the answer must be the change generated on the output growth rate.)

Answer:

Question7

The demand side models, e.g. the Thirlwall model, are based in the production function as an explanatory mechanism of the output growth.

Select one:

True

False

Question8

About the Romer's model is false:

Select one:

a.

Workers divide their time between the creation of more product and innovative activities.

b.

The model is fully endogenous.

c.

The model focuses in Research and Development.

d.

There are decreasing returns of scale of scientists on the innovation process.

e.

There are decreasing returns of the existing knowledgeon the innovation process.

Question 9

About the Cass model is true:

Select one:

a.

There is no social planner that make all the decisions.

b.

All parameters are determine inside the model, i.e. all parameters are endogenous.

c.

The main objective is maximize the consumption per capita through the welfare function.

d.

The Cass model uses a productive function with increasing returns of scale, similarly to the AK model.

e.

The model only uses macroeconomic equation to its foundations.

Question10

About the Lucas model is false:

Select one:

a.

The production function has constant returns of scale.

b.

Countries with higher education levels exhibit higher growth rates.

c.

The variable that determine the time dedicated to the production can grow indefinitely.

d.

Workers divide their time between production and human capital accumulation activities.

e.

The growth rate of the output per capita is a portion of the growth rate of the human capital accumulation