The most surprising outcome of the Solow growth model is that
A) the population growth rate has no effect on the standard of living.
B) the capital-labor ratio has no effect on the output-labor ratio.
C) a higher rate of national saving does not lead to a permanently higher rate of output growth.
D) a higher rate of depreciation lowers the capital-labor ratio, but not the output-labor ratio.
C
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Economic theories, or models, enable us to predict and to give reasonable explanations regarding economic variables
a. True b. False Indicate whether the statement is true or false
In April 1991, Argentina adopted a currency board primarily to address the problem of:
A. triple-digit inflation. B. high interest rates. C. large trade surpluses. D. slow growth.
The ways in which monetary policy affect output and prices are known as:
A) channels B) stations C) vehicles D) means
Figure 9.6 shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car
If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explain.