Assume an endogenous growth model with labor augmenting technology The

# Assume an endogenous growth model with labor

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15. Assume an endogenous growth model with labor augmenting technology. The production function is Y = F(K,AN), with A = 2(K/N) such that y = 2k. If the savings rate is s = 0.08, the rate of population growth is n = 0.03, and the rate of depreciation is d = 0.04, what is the growth rate of output per capita? A) 1% B) 3% C) 4% D) 7% E) 9% Ans: E 16. Assume an endogenous growth model with labor augmenting technology. The production function is Y = F(K,AN), where A = 2(K/N) such that y = 2k. If the savings rate is s = 0.06, the rate of population growth is n = 0.05, and the rate of depreciation is d = 0.04, then the growth rate of real output per capita is 17. Assume an endogenous growth model with labor augmenting technology and a production function of the form Y = F(K,AN), where A = 1.2(K/N) such that y = (1.2)k. If the rate of population growth is n = 0.06 and the rate of depreciation is d = 0.04, how large does the savings rate (s) have to be to achieve a per-capita growth rate of 8 percent? 18. Assume an endogenous growth model with labor augmenting technology and a production function of the form Y = F(K,AN), where A = 1.2(K/N) such that y = (1.2)k. If the savings rate is s = 0.15 and the rate of depreciation is d = 0.05, how high does population growth (n) have to be to achieve a growth rate of 10 percent? 19. Assume an endogenous growth model with labor augmenting technology. The production function is Y = F(K,AN), where A = a(K/N) such that y = ak. If the savings rate is s = 0.1, the rate of population growth is n = 0.04, and the depreciation rate is d = 0.02, how much would "a" have to be to achieve a 12% growth rate of output? A) 0.6 B) 1.2 C) 1.8 D) 2.0 E) 2.4 Ans: C 24. The neoclassical growth model predicts absolute convergence for countries with the ASAD 15. Which of the following is NOT reflected in a shift of the AD-curve? 16. The slope of the AS-curve becomes steeper  #### You've reached the end of your free preview.

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