Reference no: EM13737018
1. In the post war period, a country could increase the national saving rate and therefore:
A. the economy will grow at a faster rate forever
B. the capital-labor ratio will increase forever
C. the economy will grow at a faster rate until a higher level is reached
D. the capital-labor ratio will eventually decline
2. The depreciation rate in United State is about 4% and population growth rate is 0.9% in 2012 and the technology growth rate is 2.1%. According to the Solow model, which of the following is true?
A. Capital per effective worker is growing in steady-state at a rate of 0.9%.
B. Output per effective worker is growing in steady-state at a rate of 3%.
C. Output per worker is growing in steady-state at a rate of 2.1%.
3. Bangladesh is a sovereign country in South Asia. With a population exceeding 150 million people, it is the eighth most populous country in the world. The daily real income per person in Bangladesh is $1.5. According to the Solow model, which of the following policy could potentially increase the living standard in Bangladesh to a higher level?
A. Increase the saving rate.
B. Reduce the population growth rate.
C. Decrease the depreciation rate.
D. Encourage the technology growth.
E. All of above.
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