Assignment%204

Assignment%204 - Econ 199 Macroeconomic Theory I Assignment...

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Econ 199 Macroeconomic Theory I Assignment 4 (Chapter 10, 11,12) Due: in TA’s office hour, May 27th, 2009, Wednesday 1. Label each of the following statement true, false, or uncertain. Explain briefly. a) In the long-run, capital accumulation affects the level of output, but not the growth rate of output per capita. b) Output per capita in most countries in the world is converging to the level of output per capita in the United States. c) For much of the human history, any increase in output leads to a proportional increase in population, and therefore, there was stagnation of output per capita. d) A higher investment rate cannot sustain higher growth rate forever. e) The golden rule capital stock is the capital stock that gives the highest steady state output per worker. f) Education increases human capital, and so output. So increase education can sustain the long-run growth. g) If the production function is in the form of constant return to capital, for example, like Y=AK, where K is capital and A is a constant productivity level, then capital
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Assignment%204 - Econ 199 Macroeconomic Theory I Assignment...

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