6. Which of the following is NOT a source of increased factor productivity? A)advances in knowledgeB)growth in the size of the labor forceC)more efficient resource allocationD)improved methods of productionE)technological progress 7. Assume a Cobb-Douglas production function where the share of labor is 0.7 and the share of capitalis 0.3. If there is no technological progress, labor grows at 2%, and capital grows at 1.5%, then realoutput will grow by 8. Assume a Cobb-Douglas production function, where the share of labor (N) and capital (K) is each1/2 and A = 1. If the growth rate of labor is n = 0.06, the rate of depreciation is d = 0.04, and thesavings rate is s = 0.2, what is the value of the steady-state capital-labor ratio? 9. In a neoclassical growth model, if the capital-labor ratio is lower than the (optimal) steady-statelevel, we should expect that 10. In a neoclassical growth model, a nation with a declining population growth rate will experience A)a decrease in living standardsB)an increase in living standardsC)a lower savings rateD)an increase in long-term growthE)a decrease in the steady-state capital-labor ratio 11. The steady state is defined as a long-run equilibrium at which capital, labor, and output all grow atthe same rate. To be in a steady state in a neoclassical model, which of the following equations has tobe satisfied?
12. In a neoclassical growth model in which a one-time advance in technology occurs we could expect
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- Spring '17