Practice Questions for Solow Model (Excel Sheet).docx

# Practice Questions for Solow Model (Excel Sheet).docx -...

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Spring 2015 Solow Model Excel Exercises: 1. Use worksheet 1 (lableled “Solow Model” of the excel spreadsheet Solow_Model.xlsx to answer the following questions. a. With an initial level of capital stock, what is the initial level of per capita output (look at cell C2)? What is the initial amount of net investment? b. What is happening to the per capita capital stock over time? What is happening to per capita output over time? c. How many periods does it take for per capita output to move from the current position to half-way to the steady-state? 2. Go to worksheet 2 (labeled Solow Model 2). Change the initial (per capita) capital stock from 100 in cell B2 to 12000. 3. Given your answers to questions 1 and 2, fill in the blanks for the following statement.

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