In the long run or steady state of the Solow growth model, the growth rate of capital per worker is higher with higher saving rate
a. true
b. false
Ans: b. false
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You are playing a game in which a dollar bill is auctioned. The highest bidder receives the dollar in return for the amount bid. However, the second-highest bidder must pay the amount that he or she bids, and gets nothing in return
The optimal strategy is: A) to bid the smallest allowable increment below $1. B) to bid nothing. C) to bid $0.99. D) to bid more than a dollar.
Catherine's demand for fish takes the conventional form of a downward-sloping demand curve. When the price of fish falls, her consumer surplus
a. increases b. decreases c. remains unchanged because the demand curve didn't change d. remains unchanged because the quantity demanded remains unchanged e. decreases only if price elasticity of demand is greater than one
Starting from an initial long-run equilibrium, an unanticipated shift to a more expansionary monetary policy would tend to increase
a. prices and unemployment in the long run. b. real output in the short run but not in the long run. c. real output in the long run but not in the short run. d. real output in both the long run and the short run.
Economic sanctions
A) usually work to create policy change in the targeted country. B) are more likely to work if the international community supports them. C) are more likely to work if military force is not used. D) never work to create policy change in the targeted country.