According to the Solow model, given the levels of total efficiency units of labor and technology:
A) efficiency units of labor do not play any role in the determination of steady-state equilibrium level of GDP.
B) there is a maximum fixed level of GDP that an economy can achieve by increasing savings.
C) increases in the savings rate is the sole reason for sustained economic growth.
D) increases in the rate of physical capital accumulation can be the sole reason for sustained economic growth.
B
You might also like to view...
Under sticky prices
A) a fall in the money supply raises the interest rate to preserve money market equilibrium. B) a fall in the money supply reduces the interest rate to preserve money market equilibrium. C) a fall in the money supply keeps the interest rate intact to preserve money market equilibrium. D) a fall in the money supply does not affect the interest rate in the short run, only in the long run. E) a fall in the money supply raises the interest rate to preserve money market equilibrium in the long run.
Commercial policy is government policy that influences:
a. the operation of commercial banks. b. domestic trade flows. c. domestic private corporations. d. international trade flows. e. the operation of capital markets.
A surplus in a labor market exerts an upward pressure on the equilibrium wage rate
a. True b. False Indicate whether the statement is true or false
Numerous studies have shown that breathing second-hand cigarette smoke is harmful to your health. This suggests that a tax on cigarettes will:
A. have no effect on total economic surplus. B. increase total economic surplus. C. lead to a decrease in the price of cigarettes. D. decrease total economic surplus.