following changes would cause a country to have permanently higher output per wo
ID: 1162709 • Letter: F
Question
following changes would cause a country to have permanently higher output per worker? a. A higher savings rate. b. A higher population growth rate. c. A war that lowers its population by one-half. d. None of the aboxe. Question6 China's PPP GDP p.c. is currently growing at around 7% per year. Analysts note that if they continue to grow at this rate, they will overtake the United States around 2042. What is the problem with this projection? a. The growth is probably fueled by an increase in saving, which means it will not last. b. It does not specify what day and month China will overtake the United States. c. Based on past evidence, Chinese growth will probably accelerate soon, leading them to catch up sooner d. China's population growth is too low to sustain this high growth rate.Explanation / Answer
Ans5) the correct option is a). A Higher savings rate. Higher saving means higher investment which leads to higher capital per worker which is an input for output pet worker.
Ans6) the correct option is a). The growth is probably fueled by an increae in saving which means it will lost.
According to the solow model the country will move to a new higher stead state with higher income per capita but this growth is not permanent but slow down and eventually stop.
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