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Questions › IIT JAM › IIT JAM 2024 › Q57
2 marksEconomics of Growth and Development › Endogenous growth and technical progress › Endogenous growth: AK and R&D modelsHardabout 3 min

IIT JAM 2024 Question 57: Endogenous growth and technical progress

An economy has Yt=AtLytY_t = A_t L_{yt}Yt​=At​Lyt​ and idea production At+1−At=1250AtLatA_{t+1} - A_t = \tfrac{1}{250} A_t L_{at}At+1​−At​=2501​At​Lat​, with A0=1A_0 = 1A0​=1. If Lat=10L_{at} = 10Lat​=10 and Lyt=90L_{yt} = 90Lyt​=90 for all ttt, the growth rate of YtY_tYt​ at t=50t = 50t=50 is ________ percent (in integer).

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Plain-text version

An economy has Yₜ = Aₜ L_(yt) and idea production Aₜ₊₁ - Aₜ = 1/250 Aₜ Lₐₜ, with A₀ = 1. If Lₐₜ = 10 and L_(yt) = 90 for all t, the growth rate of Yₜ at t = 50 is percent (in integer).

Also written as: An economy has Y_t = A_t L_(yt) and idea production A_(t+1) - A_t = 1/250 A_t L_(at), with A_0 = 1. If L_(at) = 10 and L_(yt) = 90 for all t, the growth rate of Y_t at t = 50 is percent (in integer).

Endogenous growth and technical progress has come up 25 times in 6 exams since 2016.

What this question tests

This question is on Endogenous growth: AK and R&D models, part of Endogenous growth and technical progress in Economics of Growth and Development.

Models where long-run growth comes from within the model, from capital or from ideas.

TestStop has 10 past-paper questions on this subtopic; the nearest in year are below.

  • GATE 2023 · Q36In the context of endogenous growth theory, the Nobel laureate Paul Romer emphasized that "ideas" are
  • IIT JAM 2022 · Q28The technical change in the endogenous growth model is endogenized by
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