Solved

If We Define sˉ1\bar { s } _ { 1 }

Question 68

Multiple Choice

If we define sˉ1\bar { s } _ { 1 } and sˉ2\bar { s } _ { 2 }
As the saving rates in Countries 1 and 2, respectively, dˉ1=dˉ2\bar { d } _ { 1 } = \bar { d } _ { 2 }
As the depreciation rates in Countries 1 and 2, respectively, and   Aˉ1\bar { A } _ { 1 } And  
Aˉ2\bar { A } _ { 2 } As productivity in Countries 1 and 2, respectively, in the Solow model, the equation ________ predicts that ________ contribute the most to differences in steady-state output per worker.


A) y1y2=(Aˉ1Aˉ2) 3/2\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 3 / 2 } ; productivity differences
B) y1y2=(Aˉ1Aˉ2) 3/2×(sˉ1sˉ2) 1/2\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 3 / 2 } \times \left( \frac { \bar { s } _ { 1 } } { \bar { s } _ { 2 } } \right) ^ { 1 / 2 } ; saving rate differences
C) y1y2=(sˉ1sˉ2) 3/2×(Aˉ1Aˉ2) 1/2\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { s } _ { 1 } } { \bar { s } _ { 2 } } \right) ^ { 3 / 2 } \times \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 1 / 2 } ; productivity differences
D) y1y2=(Aˉ1Aˉ2) 3/2×(sˉ1sˉ2) 1/2\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 3 / 2 } \times \left( \frac { \bar { s } _ { 1 } } { \bar { s } _ { 2 } } \right) ^ { 1 / 2 } ; productivity differences
E) y1y2=(sˉ1sˉ2) 1/2\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { s } _ { 1 } } { \bar { s } _ { 2 } } \right) ^ { 1 / 2 } ; saving rate differences

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents