16. In the Solow growth model where s is saving rate, y is output pe.docx - 16 In the Solow growth model where s is saving rate y is output per worker

16. In the Solow growth model where s is saving rate, y is output pe.docx

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16. In the Solow growth model where s is saving rate, y is output per worker, and i is investment per worker, consumption per worker, c, equals A. syB. (1-s)yC. (1+s)yD. (1-s)y-i 17. If the capital stock equals 200 units in year 1 and depreciation rate is 5% per year, then in year 2, assuming no new or replacement investment, the capital stock would equal_____ units. 18. In the Solow model, it is assumed that a(n) ______ fraction of capital wears out as the capital-labor ratio increases 20. The formula for the steady-state ratio of capital to labor
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Unformatted text preview: (k*), with no population growth or technological change is, s A. dividend by the depreciation rate B. multiplied by the depreciation rate C. divided by the product of f(k*), and the depreciation rate D. multiplied by f(k*) divided by the depreciation rate 21. In the Solow growth model, if investment exceeds depreciation, the capital stock will ______ and output will ______ until the steady state is attained. A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase...
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  • Fall '17
  • Bob Maxwell

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