Suppose that the government passes a law requiring households to increase savings 10% above previous levels. According to Solow's growth theory, in the short run
A) output per capita grows more rapidly.
B) output per capita grows at the constant steady state rate, n.
C) output per capita stays constant.
D) None of the above.
A
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In order for Ireland to grow more potatoes, wool production must decrease. This situation is an example of
A) opportunity benefit. B) a tradeoff. C) zero opportunity cost. D) producing at a point that lies beyond the PPF. E) a free lunch.
Total revenue
a. always increases as price increases. b. increases as price increases, as long as demand is elastic. c. decreases as price increases, as long as demand is inelastic. d. remains unchanged as price increases when demand is unit elastic.
A person who has given up searching for work is called:
a. a discouraged worker. b. unemployed. c. frictionally unemployed. d. structurally unemployed.
When the market does not lead to an optimal allocation of resources, there must be
A. Too much regulation. B. Proper antitrust laws in place. C. A market failure. D. A competitive market structure.