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BA Economics (H) Semester V

Economic Growth & Business Cycles ( ECON - 014 )

Join Best Online Coaching for Economic Growth & Business Cycles (Econ – 014) for BA Economics (H) Semester V, Delhi University 2026 at Prime Academy under the guidance of our highly experieced teacher Mr. Dheeraj Suri, (an expert faculty teaching Economics for over 25 years).

To get access of our Online Coaching Program for Economic Growth & Business Cycles (ECON – 014) for BA Economics (H) Semester V, Delhi University 2026, you need to Subscribe our course.

If you are not registered at our website then Register Here.

(After Registration Inform us at +91 9899 192027 to get the access)

If you are already registered & have got the access then LOGIN Here to start studying

Quick Links for Economic Growth & Business Cycles

The Economic Growth & Business Cycles ( ECON – o14 ) Course for BA Economics (H) Semester V, Delhi University, has been taught by Mr. Dheeraj Suri. The Video Lectures are based upon the books prescribed by the University of Delhi. The duration of video lectures is approximately 55 Hours.

💻🎥 Full Course Video Lectures : Unlock the ultimate learning experience with our Full Course Video Lectures that explain every concept clearly and in depth. Our video lectures cover everything —

✅ All theory portions explained in detail
✅ Complete solutions for end-of-chapter questions
✅ Fully solved previous year papers
✅ A huge collection of numerical problems for thorough practice

📚 PDF Notes : You’ll also get Complete Study Material (PDF Notes) packed with:

✅ Key concepts explained in simple language

✅ Previous Year Questions from Last 20 Year Papers

✅ Practice Numericals & MCQs

✅ A curated list of Important Questions for your exams

✍🏻 Live Online Classes : Stay on top of your preparation with Live Online Doubt-Solving Sessions with expert faculty at least twice a week, ensuring you never stay stuck.
✏️📖 Online Discussion Forum : Engage with peers and mentors in our Online Discussion Forum — post queries, share ideas, and learn together.
📝 Mock Test : Test yourself with Regular Mock Tests hosted right on our website to track your progress and improve consistently.
✍🏻Comprehensive Coverage of Syllabus and Exam Oriented Preparation

🎯 This online coaching platform aims to provide a supportive and engaging learning environment for students to achieve academic success and excel in their Economics (Honours) program.

Recomended Readings

1. Jones, Charles I and Vollrath, Dietrich (2013), Introduction to Economic Growth. W.W. Norton & Co.
2. Carlin, Wendy and Soskice, David (2015 edition), Macroeconomics: Institutions, Instability and the Financial System.

Click Here for Reading List of Economic Growth & Business Cycles

Economic Growth & Business Cycles (Econ – 014) Introduction Video

Chapter 1 : Facts of Economic Growth

Lecture 1 : Why Some Countries are Rich & Some Poor

Lecture 2 : Data of Growth & Development

Chapter 2 : Solow Model

Lecture 1 : Solow Model

Lecture 2 : Effect of Change in Saving rate

Previous Year Questions (PYQ’s)

PYQ 2025 Q3

PYQ 2024 Q1 to Q15

These Lectures are only for Demo

For Complete Course Video Lectures you need to Subscribe Our Course

Contact us at +91 9899 192027 for details

Click Here for Demo PDF Study Material

These PDF Notes are only for Demo

For Complete Course PDF Notes you need to Subscribe Our Course

Contact us at +91 9899 192027 for details

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Time Allowed for this Test is 20 Minutes

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Solow Model Test #1

1. Please Read the Questions and all the options Carefully, Before Selecting Your Choice.
2. You are not Allowed to edit your answers after submission.
3. The Paper has twenty Questions
4. Time Allowed is 20 Minutes.
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1 / 20

Investment increases proportionately with the increase in capital stock implies that, for a given rate of saving _______

those economies which have lower level of capital will have higher level of investment

those economies which have higher level of capital will have higher level of investment

those economies which have lower level of capital will have Constant level of investment

those economies which have higher level of capital will have lower level of investment

2 / 20

In the Solow Model, The production function becomes __________ as k increases indicating that it gives _____________ marginal product of capital

Flatter ; Increasing

Steeper ; Increasing

Flatter ; Diminishing

Steeper ; Diminishing

3 / 20

The aggregate production function for the Solow growth model assumes (A) ___________ returns to scale and (B) _____________marginal productivity of labour and capital.

A : Increasing, B : Diminishing

A : Constant, B : Diminishing

A : Decreasing, B : Diminishing

A : Increasing, B : Constant

4 / 20

In the Solow Model, the point where investment is equal to depreciation is known as the ______________.

Equilibrium Point

Steady State

Break Even Point

None of the above

5 / 20

According to the Solow Model, _____________________ is a function of capital.

Labour

Output

Technology

Population

6 / 20

Consider an economy described by the following production function :

F(K, L) = K^0.5L^0.5

Assume that the rate of depreciation is 10% per year and rate of saving is 30%. Find the steady state level of Investment of Solow’s model.

i* = 0.9

i* = 0.10

i* = 3

i* = 0.16

7 / 20

Consider an economy described by the following production function :

F(K, L) = K^0.5L^0.5

Assume that the rate of depreciation is 10% per year and rate of saving is 30%. Find the steady state capital stock per worker of Solow’s model.

k* = 16

k* = 10

k* = 9

k* = 3

8 / 20

In the Solow Model, the change in saving rate produces

Level Effect

Growth Effect

No Effect on steady state

None of these

9 / 20

In the Solow Model, the economy which is not at steady state

will remain where it is initially

will automatically reach at Golden rule Level of Capital

will approach towards its steady state

will never reach its steady state

10 / 20

In the Solow Model, at the steady state we have

Change in Capital = Investment

Change in Capital = Depreciation

Change in Capital = Investment plus Depreciation

Change in Capital = Investment minus Depreciation

11 / 20

In the Solow model, the steady-state level of capital per worker is determined by:

The saving rate and the population growth rate.

The level of technology and the depreciation rate.

The saving rate, the population growth rate, the level of technology, and the depreciation rate.

Government policies and external shocks.

12 / 20

What is the "golden rule" level of capital in the Solow model?

The level of capital that maximizes the output per worker.

The level of capital that maximizes the consumption per worker.

The level of capital that maximizes the saving rate.

The level of capital that minimizes the population growth rate.

13 / 20

In the Solow model, what role does the depreciation rate play in the economy?

It determines the long-term growth rate of the economy.

It influences the steady-state level of capital per worker.

It is irrelevant to the level of output.

It only affects short-term economic fluctuations.

14 / 20

The Solow model predicts that countries with lower initial levels of capital per worker will:

Grow at the same rate as richer countries.

Grow faster than richer countries, due to diminishing returns to capital.

Grow slower than richer countries, due to higher depreciation rates.

Never catch up to richer countries.

15 / 20

In the Solow model, technological progress is often considered to be:

Endogenous.

Exogenous.

Determined by the level of capital.

Irrelevant to economic growth.

16 / 20

According to the Solow model, if a country increases its saving rate, what will happen in the long run?

The country will achieve a higher level of steady-state consumption per worker.

The country will achieve a higher level of steady-state capital per worker.

The country will experience higher population growth.

The country will see a permanent increase in the growth rate of output per worker.

17 / 20

In the context of the Solow model, what is meant by "steady state"?

A situation where the economy is growing at a constant rate forever.

A situation where the capital per worker and output per worker remain constant over time.

A situation where the saving rate is equal to the depreciation rate.

A situation where technological progress ceases.

18 / 20

According to the Solow model, an increase in the population growth rate will:

Increase the steady-state level of capital per worker.

Decrease the steady-state level of capital per worker.

Have no effect on the steady-state level of capital per worker.

Increase the steady-state level of output per worker.

19 / 20

Which of the following assumptions is NOT part of the Solow model?

Constant returns to scale in production.

Diminishing returns to individual factors of production.

Endogenous technological change.

A constant saving rate.

20 / 20

In the Solow model, convergence occurs when:

All countries grow at the same rate regardless of their initial conditions.

Poorer countries grow faster than richer ones, leading to equal levels of income per worker over time.

Richer countries grow faster than poorer ones, maintaining the income gap.

Population growth rates adjust to equalize income per worker.

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These Mock Tests are only for Demo

For Complete Course Mock Test Series you need to Subscribe Our Course

Contact us at +91 9899 192027 for details

Question Paper will be of 90 Marks

Unit II : 50%

Unit I and Unit II : 50%

The Paper will consist of Three Sections of 30 Marks

Section A will have 15 MCQ’s/One Line Answer Questions of 2 Marks each, with no choice of any kind

In Section B, students will be required to do any 6 out of 8 questions for 5 Marks each

In Section C, Students will be required to do any 3 out of 4 questions of 10 Marks each

Course Fee is Rs. 9,000 per subject

Dheeraj Suri Classes

Welcome to Prime Academy

BA Economics (H) Semester V

Economic Growth & Business Cycles ( ECON - 014 )

Join Best Online Coaching for Economic Growth & Business Cycles (Econ – 014) for BA Economics (H) Semester V, Delhi University 2026 at Prime Academy under the guidance of our highly experieced teacher Mr. Dheeraj Suri, (an expert faculty teaching Economics for over 25 years).

To get access of our Online Coaching Program for Economic Growth & Business Cycles (ECON – 014) for BA Economics (H) Semester V, Delhi University 2026, you need to Subscribe our course.

If you are not registered at our website then Register Here.

(After Registration Inform us at +91 9899 192027 to get the access)

If you are already registered & have got the access then LOGIN Here to start studying

Quick Links for Economic Growth & Business Cycles

The Economic Growth & Business Cycles ( ECON – o14 ) Course for BA Economics (H) Semester V, Delhi University, has been taught by Mr. Dheeraj Suri. The Video Lectures are based upon the books prescribed by the University of Delhi. The duration of video lectures is approximately 55 Hours.

💻🎥 Full Course Video Lectures : Unlock the ultimate learning experience with our Full Course Video Lectures that explain every concept clearly and in depth. Our video lectures cover everything —

✅ All theory portions explained in detail ✅ Complete solutions for end-of-chapter questions ✅ Fully solved previous year papers ✅ A huge collection of numerical problems for thorough practice

📚 PDF Notes : You’ll also get Complete Study Material (PDF Notes) packed with:

✅ Key concepts explained in simple language

✅ Previous Year Questions from Last 20 Year Papers

✅ Practice Numericals & MCQs

✅ A curated list of Important Questions for your exams

✍🏻 Live Online Classes : Stay on top of your preparation with Live Online Doubt-Solving Sessions with expert faculty at least twice a week, ensuring you never stay stuck.

✏️📖 Online Discussion Forum : Engage with peers and mentors in our Online Discussion Forum — post queries, share ideas, and learn together.

📝 Mock Test : Test yourself with Regular Mock Tests hosted right on our website to track your progress and improve consistently.

✍🏻Comprehensive Coverage of Syllabus and Exam Oriented Preparation

🎯 This online coaching platform aims to provide a supportive and engaging learning environment for students to achieve academic success and excel in their Economics (Honours) program.

Recomended Readings

1. Jones, Charles I and Vollrath, Dietrich (2013), Introduction to Economic Growth. W.W. Norton & Co.2. Carlin, Wendy and Soskice, David (2015 edition), Macroeconomics: Institutions, Instability and the Financial System.

Click Here for Reading List of Economic Growth & Business Cycles

Economic Growth & Business Cycles (Econ – 014) Introduction Video

Chapter 1 : Facts of Economic Growth

Lecture 1 : Why Some Countries are Rich & Some Poor

Lecture 2 : Data of Growth & Development

Chapter 2 : Solow Model

Lecture 1 : Solow Model

Lecture 2 : Effect of Change in Saving rate

Previous Year Questions (PYQ’s)

PYQ 2025 Q3

PYQ 2024 Q1 to Q15

These Lectures are only for Demo

For Complete Course Video Lectures you need to Subscribe Our Course

Contact us at +91 9899 192027 for details

Click Here for Demo PDF Study Material

These PDF Notes are only for Demo

For Complete Course PDF Notes you need to Subscribe Our Course

Contact us at +91 9899 192027 for details

These Mock Tests are only for Demo

For Complete Course Mock Test Series you need to Subscribe Our Course

Contact us at +91 9899 192027 for details

Question Paper will be of 90 Marks

Unit II : 50%

Unit I and Unit II : 50%

The Paper will consist of Three Sections of 30 Marks

Section A will have 15 MCQ’s/One Line Answer Questions of 2 Marks each, with no choice of any kind

In Section B, students will be required to do any 6 out of 8 questions for 5 Marks each

In Section C, Students will be required to do any 3 out of 4 questions of 10 Marks each

Course Fee is Rs. 9,000 per subject

Upon receipt of Course Fee, we will activate your account on our website.

Once you get Access you need to login and download our APP and all the lectures from your login account and play in your device.

Access of Video Lectures is provided on any one of the following devices :

Windows Computer or Laptop or,

Android Phone or Tablet or,

Apple Iphone or Ipad or,

Apple Macbook

Till end of Semester V Exams

Course Content of our Video Lectures

Lectures are Strictly as per Latest Syllabus for UGCF

Unit I : Introduction to Economic Growth

Chapter 1 : The Facts of Economic Growth

Number Video Lectures : 2

Duration of Video Lectures : 60 Minutes

Based Upon Chapter 1 Charles I. Jones & Vollrath

Topics Covered

►Introduction to Economic Growth & Economic Development,

►Data on Economic Growth,

►Stylized Facts of Economic Growth,

Unit II : Models of Economic Growth

Chapter 2 : The Solow Model

Number Video Lectures : 7

Duration of Video Lectures : 300 Minutes

Based Upon Chapter 2 Charles I. Jones & Vollrath

Topics Covered

►Solow Model, Assumptions of Solow Model,

✅ All theory portions explained in detail
✅ Complete solutions for end-of-chapter questions
✅ Fully solved previous year papers
✅ A huge collection of numerical problems for thorough practice

1. Jones, Charles I and Vollrath, Dietrich (2013), Introduction to Economic Growth. W.W. Norton & Co.
2. Carlin, Wendy and Soskice, David (2015 edition), Macroeconomics: Institutions, Instability and the Financial System.