An economy with a capital-labor ratio that is lower than the steady-state level can achieve a steady-state equilibrium at this lower capital-labor ratio only if
A: the savings rate decreases
B: the rate of depreciation decreases
C: the rate of population growth decreases
D: technological advances are made
E: all of the above
A: the savings rate decreases
B: the rate of depreciation decreases
C: the rate of population growth decreases
D: technological advances are made
E: all of the above
举一反三
- The idea of a steady state is that A: the capital-labor ratio grows at a constant rate B: output per capita grows at a constant rate C: output, capital, and labor all grow at the same rate D: an increase in the savings rate will not affect the capital-labor ratio E: real output cannot grow
- If an economy is initially in a steady state and it experiences an<br/>increase in its saving rate, then the steady-state capital stock will<br/>____ A: fall. B: stay the same. C: rise. D: rise only if depreciation also rises.
- The neoclassical growth model predicts conditional convergence for countries with the same population growth, level of technology, and A: a higher savings rate B: a lower savings rate C: the same savings rate D: all of the above E: none of the above
- In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment. A: raises; increases B: raises; decreases C: lowers; increases D: lowers; decreases
- The Rule of 70 is used to A: estimate how much of an economy's growth rate is due to increases in capital per hour of labor B: calculate the standard of living C: calculate the economy's growth rate D: estimate how long it will take the level of any variable to double