please type the answer by computer, so i can see it clearly, thank you!!! Please answer in detail Determine whether the following statement is True, False, or Uncertain, and explain your answer. Statement: The Solow model suggests that economic growth is always and everywhere the result of sustained technological innovation

please type the answer by computer, so i can see it clearly, thank you!!! Please answer in detail Determine whether the following statement is True, False, or Uncertain, and explain your answer. Statement: The Solow model suggests that economic growth is always and everywhere the result of sustained technological innovation

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Productivity And Growth

Section: Chapter Questions

Problem 2.4P

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Sweden and Norway are two neighboring countries in Northern Europe with similar savings rates, population growth rates, technology growth rates, and depreciation rates. However, Norway differs from Sweden in that Norway has large deposits of oil all along its coast, which makes it very easy for Norway to produce large quantities of crude oil every year with relatively little capital and labor. a) Draw a Solow Growth diagram that compares Sweden and Norway. What is the main difference between the two countries in the diagram? b) According to the Solow Growth Model, which country would have a higher standard of living in the long run? Which country would have a higher growth rate of its standard of living in the long run? c) Suppose now that, in the long run, oil becomes obsolete and has no value because it is uneconomical relative to renewable energy sources like solar and wind power. What would this do to your Solow Growth diagram in part a? How would the standard of living in Norway…
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Assume a Solow growth model economy with no exogenous technological change is initially at a steady state. Suppose there is a permanent decrease in the population growth rate, say on account of the spread of AIDS a major current problem in Sub-Sahara Africa. graphically the path of the economy's capital and output per capita over Show time following this event.
rowth: Homework Saved years Help Save & Ex Suppose that real GDP per capita in the United States is $53,500. If the long-term growth rate of real GDP per capita is 4.5% per year, how many years will it take for real GDP per capita to reach $107,000? Instructions: Enter your answer as a whole number. Chac
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1. Many endogenous growth models feature so called scale effects: per capita growth rises when population growth rises. Some economists have criticized these models for this reason, since countries with faster population growth do not in general appear to also experience faster per capita income growth. Consider an economy that has access to a production technology Y = AKª L¹-a where Y is output, A is the level of technology, K is capital and L is the amount of labor in the economy. Capital evolves according to K = SY (thus, the depreciation rate 6 = 0). The population growth rate is n. (Throughout, gx, where x can be any of the variables in the model). i. Assume that technology is determined by A =BK What sort of endogenous growth model is this? Find gk in terms of the K, L, and other parameters of the model. ii. Write an expression for gy in terms of gk and g₁. What must be true for a balanced growth path to exist in this model? Solve for the balanced growth path value of gy and gy,…
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Suppose a Solow economy is initially at its steady state k∗, and suddenly is hit by a decrease in the depreciation rate δ, from δ to δ1. This change does not alter any of the other exogenous parameters in the model Depict this situation in a graph What happens to steady state level of capital per capita in this situation? What happens to the level of capital per capita over time? Depict this in a graph and explain intuitively.
Question One. Answer the following pertaining to the growth theories. a) Derive the elasticity of the balanced-growth-path level of output with respect to savings rate. b) The Romer growth model assumed that growth rates if capital and knowledge are endogenously determined. Derive the growth rates of capital and knowledge. I want a answer in 15 min