Question

(1) When comparing the standard of living across countries, we need to use real GDP per capita adjusted by nominal exchange rates (a) True. (b) False. (2) The Solow growth model is able to explain the "conditional convergence" phe- lata because the theory predicts that only countries nomenon observed in the d with similar steady states will exhibit convergence. (a) True. (b) False. (3) One potential explanation for the secular decline in saving rates in the G7 coun- tries is that, compared to the 1970s and 1980s, these countries experience lower and more stable inflation after the early 1990s. (a) True. (b) False. (4) Countries with lower saving rates and higher population growth rates tend to be richer in the long-run. (a) True. (b) False. (5) Canada Pension Plan is changing gradually from a "pay-as-you-go" plan to a hybrid structure (i.e., a mix of "fully funded" and "pay-as-you-go" plan). This change will reduce Canada's capital stock in the long-run. (a) True. (b) False.
Correct answers and explain for all, thanks!