{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 5--MacroTB

# Chapter 5--MacroTB - CHAPTER 5 The Solow Growth Model...

This preview shows pages 1–3. Sign up to view the full content.

39 The Solow Growth Model CHAPTER 5 MULTIPLE-CHOICE 1. The Solow model of economic growth a. endogenizes labor. b. endogenizes physical capital. c. exogenizes physical capital. d. exogenizes investment. e. endogenizes investment. Answer: b. Section: 5.1 2. The key insight in the Solow model is that 3. The Solow model describes 4. In the corn farm example, corn can be used as 5. In the corn farm example, saving some of the corn produced a. yields future output, which grows over time. b. leads to higher consumption in the future. c. yields future output, which grows over time. d. leads to higher consumption today. e. both a and b. Answer: e. Section: 5.2 6. The production function used in the Solow model is 7. If C t denotes consumption, I t denotes investment, and Y t is output, the resource constraint in the Solow model is

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
40 | Chapter 5 8. In the Solow model, in every period, a fraction of total output __________, which __________. 9. In the Solow model, the equation of capital accumulation is a. D K t = I t – d ± K t . b. K t + 1 = K t + I t – d ± K t . c. K t + 1 = K t + I t + d ± K t . d. K t + 1 = K t + dK t I t . e. Both a and b are correct. Answer: e. Section: 5.2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 13

Chapter 5--MacroTB - CHAPTER 5 The Solow Growth Model...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online