Consider a numerical example using the Solow Growth Model, for 2 countries. Country A: d=0.1, s=0.3, n=0.01, z=1, F(K,L)=K0.3N0.7   Country B: d=0.1, s=0.2, n=0.01, z=1.5, F(K,L)=K0.4N0.6 Which Country has a higher level of GDP per capita in steady state?     Country A     Country B     Not enough information

Question 27 Consider countries A and B, with A having a higher population growth rate than B. According to the Solow-Swan model, output per person in A and output per person in B are the same in steady state. Answer True or False. Remember to include your explanation.

Think of an economy with a Malthusian demographic relationship, and with a production function of Y = K^α * E^β * (AL)^ (1-α-β), and a population growth function of gL = ϴy^μ. You know what the growth rate of productivity is 0.02, the size of α is 0.16, the size of β is 0.35, that ϴ is 0.03, and that μ is 0.61. What is the steady state level of GDP per capita? Give your answer to 2 decimal places.

Consider the following numerical examples for the Solow Growth Model: Economy A z=1 s=0.5 F(K,N)=K0.3N0.7 n=0.01 d=0.1 Economy B z=1 s=0.2 F(K,N)=K0.3N0.7 n=0.01 d=0.1 In which economy is GDP per capita higher in steady state? O Economy A O Economy B O Not enough Information

Which of the following statements is accurate: New growth theory suggests that human capital is irrelevant for economic growth. New growth theory suggests that economic growth is unsustainable because of population growth. New growth theory suggests that restraining population growth is important for economic growth. New growth theory suggests that economic growth can be sustained through the discovery of new technologies.

Consider the Solow-Swan model of growth. Imagine that the production function is Y = AKªL²-a 1. Use the production function to compute output per capita, y = Y /L, as a function of capital per person, k = K/L. 2. Derive the fundamental equation of the Solow-Swan model. Please show all the steps. Furthermore, imagine that the savings, depreciation, and population growth rates take the values s = 0.3, 8= 0.1 and n =0.01. You do not know the value of A. 3. Use the fundamental equation of the Solow-Swan model to compute the growth rate of capital per person as a function of k. 4. In the steady-state, the growth rate of capital is zero. Using the parameters assumed above, find the steady-state level of the capital stock, k_. 5. Calculate GDP per capita at the steady state. 6. Imagine that this country is in its steady state so its capital stock is k_. Imagine that the country receives a gift of one unit of capital from the world bank (so, suddenly, the capital stock is k_+1). Can you say…