Please help me answer 20-25 20. In the textbook production model, the productivity parameter enters the production function with an exponentof one, while in the Solow model's equation for the steady-state stock of capital it is greater than one because:a. the endogenous level of the capital stock itself depends on productivity.b. there is no productivity parameter in the production model.C. the productivity measure is zero in the production model.d. the productivity measure is negative in the Solow model.the exogenous level of the capital stock itself depends on productivity.21. The key difference between the Solow model and the production model is that the:Solow model endogenizes the process of capital accumulation.a.b. production model endogenizes the process of capital accumulation.c. Solow model uses different values for the capital share.d. Solow model does not contain a productivity measure.e. Solow model exogenizes the process of capital accumulation.22. The production function, Y = AKL, exhibits constant returns to scale if and only if:a. a+b=1d. a+b>1b. a+b=0e. a+b<1C.a+b>023. In the production model with CRS, aggregate output (Y) isfactors.a. largerb. smallerc. equal24. In the Solow growth model, an increase in the depreciation ratea. raisesb. decreasesc. does not affectthan/to the sum of payments to inputsteady-state investment.25. Consider a Solow economy where the per worker production function is f(k). The investment rate is 5 andthe depreciation rate is d. The golden-rule capital stock, denoted k*, solves:a. f'(k*) = 0d. f'(k*) = +00b. f'(k*) = de. None of above.c. sf'(k*) = d

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In the textbook production model, the productivity parameter enters the production function with an exponent of one, while in the Solow model's equation for the steady-state stock of capital it is greater than one because: a. the endogenous level of the capital stock itself depends on productivity. b. there is no productivity parameter in the production model. c. the productivity measure is zero in the production model. d. the productivity measure is negative in the Solow model. e. the exogenous level of the capital stock itself depends on productivity.

In the textbook production model, the productivity parameter enters the production function with an exponent of one, while in the Solow model's equation for the steady-state stock of capital it is greater than one because: a. the endogenous level of the capital stock itself depends on productivity. b. there is no productivity parameter in the production model. c. the productivity measure is zero in the production model. d. the productivity measure is negative in the Solow model. e. the exogenous level of the capital stock itself depends on productivity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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