15  True or False? The basic version of the Solow model (no population growth, no technological progress) implies an economy where growth is not Explain your answer.

What are the characteristics of a steady state in the Solow growth​ model?

Briefly discuss drawbacks of Solow model?

Evaluate Turkey’s stage, according to Rostow Stages of Growth. Explanations should be made using the relevant variables and taking into account the features of the model. Has Turkey completed the developmental stages? Please analyze.(When giving information about the features required at these stages, make a concrete assessment. For example, if you say leading sectors are established, which ones should be specified. Or if the investments should have a certain ratio of GDP at that stage, should these values be given and analyzed.)

Suppose a war destroys part of a nation's population but not its capital stock, (say on account of a neutron bomb being deployed). Use the Solow model without change to show the effect of this event on the country's total output technological and per capita output over time. Assume prior to this event the economy was on its steady state path.

Consider the Solow model. Using suitable diagrams, compare the different dynamics for the levels and growth rates of capital per capita and output per capita following: (a) a new wave of immigration, (b) an increase in the saving rate, (c) a one-shot foreign investment which increase the size of the available stock of capital, (d) an important technological advance.

How do macroeconomic theories evolve? What is the Solow growth model? How does technology affect growth? Why are institutoins the key to economic growth?

Assume a country is in steady state. Explain what will happen id a disaster hit the country and destroyed 40% of its capital stock, but nobody is killed. Draw the diagram of solow model.

Venezuela experienced a large outow of population. Choose one scenario for the subsequent Venezuelan economy that cannot be explained by Solow model. (a) Assume that productivity is constant. If those who subsequently leave return to Venezuela, then in the long run the amount of capital will return to what it was before the population outow. (b) According to the Solow model, the capital per worker should be above it's steady state. Assuming population and productivity are xed, thereafter, capital per worker will decline. (c) Assume that productivity is constant. The level of real GDP immediately after outows is lower than the original level because of the decline in population. (d) Assuming that the population remains unchanged permanently after the population outow, even in the short term, Venezuela's growth rate will be determined solely from the growth rate of productivity.

(a) Two countries, Country A and Country B, are described by the Solow growth model. Both countries are identical, except that the rate of labor-augmenting technological progress is higher in A than in B. i. In which country is the steady-state growth rate of output per effective worker higher? ii. Does the Solow growth model predict that the two economies will converge to the same steady state? p (b) Based on the Solow growth model with population growth and labor-augmenting technological progress, explain how each of the following policies would affect the steady-state level and steady-state growth rate of total output per person: i. an increase in the government's budget deficit poits) inis) ii. grants to support research and development (c) Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. Assume the production function is now Y = AK. What happens to the growth rate of per capita GDP over time? (6pints)