(1) According to Bosworth and Collins (2008), China stands out for the explosive
ID: 1162872 • Letter: #
Question
(1) According to Bosworth and Collins (2008), China stands out for the explosive growth in its industrial sector, which was primarily driven by the fast capital accumulation and high TFP growth in this sector. (a) True. (b) False. (2) According to Bosworth and Collins (2008), India's growth has been the strongest in its service sector, which was primarily driven by the fast capital accumulation in this sector. (a) True (b) False. (3) According to Fortin (1996), the Bank of Canada has tried to main the inflation rate at 2% level since 1989, This policy was too tight and was one of the reasons that the Canadian economy slipped into a prolonged recession in the 1990s (a) True. (b) False. (4) In a AK type of model, an increase in the saving rate will permanently increase the growth rate of output because capital is not subject to diminishing returns any more. (a) True. (b) False. (5) If we only account for the licence fees and patent and copyright fees paid across borders, we are likely to underestimate the true technology transfers between countries. (a) True.Explanation / Answer
1. True
China growth was due to performance of industrial sector . Industrial sector growth featured? increased contribution of low cost manifacturing and increase in total factor productivity.
2. True
Indian? growth story has missed the industrial phase and directly move to services sector. This is due to increased contribution of service sector rather than industrial sector to the GDP.
3. True
Inflation in Canada was very high during 1980's so central tried to control inflation but that resulted in lowering consumer demand and thus slipping country into recession.
4.False
In AK model growth is based on innovation and development of human capital rather than savings which is taken as constant.
5. I am not little doutful . I think the given statement is false. Please check other answers.
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