This question refers to the Solow–Swan model with constant technology. Imagine the model is in steady state and the population growth rate rises. As a result the steady-state level of real GDP per capita will:Group of answer choicesstay the samefallcan’t say because we need to know what will happen to the steady-state level of capital per person and, in the absence of that information, we can’t answer the questionrise

In the Solow–Swan model, a decrease in the rate of population growth will have what effect on the steady-state level of real GDP per capita?Group of answer choicesIncreaseDecreaseNo change in real GDP per capita because although it does change the rate at which output and population are growing, it will make both growth rates change by the same amount and so the output-population ratio will be unchangedNo change in real GDP per capita because although it does change the level of labour, the level of capital will change to keep the capital-labour ratio the same as before

Imagine a Solow–Swan model with the technology parameter (A) constant. The saving rate is θ, the population growth rate n, and the depreciation rate d. When the model has reached the steady state, the capital stock K will:Group of answer choicesBe constantBe rising at the rate nBe rising at the rate θ(Y/L)/(d + n)

An implication of the Solow–Swan growth model is:Group of answer choicespoor countries will eventually have higher steady state levels of per capita income than rich countriesrich countries will grow at a faster rate than poor countries, as long as both groups of countries have the same steady statepoor countries will grow at a faster rate than rich countries, as long as both groups have the same steady statepoor countries have lower steady state levels of per capita income than rich countries

Consider a basic Solow–Swan model with constant labour force L and constant total factor productivity A. Suppose the saving rate is 𝑠=0.4 and the depreciation rate is 𝛿=0.1 . Suppose also that steady-state output per worker is 100. Steady state capital per worker is?

The country of Swan is very wealthy, with a high level of per capita income and capital. The country of Solow is quite poor, with low levels of per capita income and capital. Both countries have the same production function, Y = Af(K, L), and both countries are described by the Solow–Swan growth model. Assuming the two countries have the same steady state per capita income, then:Group of answer choicesSolow will grow more quickly than Swanas the two economies have the same steady state, they must grow at the same rateSwan will see its per capita income decline, while Solow will see its per capita income riseSwan will grow more quickly than Solow