In the steady-state diagram of the Solow model, an increase in saving per worker is shown by
A. shifting the saving-per-worker curve down, resulting in a lower steady-state capital-labor ratio.
B. shifting the saving-per-worker curve down, resulting in a higher steady-state capital-labor ratio.
C. shifting the saving-per-worker curve up, resulting in a higher steady-state-capital-labor ratio.
D. shifting the saving-per-worker curve up, resulting in a lower steady-state capital-labor ratio.
Answer: C
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Which of the following helps a monopoly perfectly price discriminate?
A) unit demand by each consumer B) the product is perishable C) the product is personalizable D) All of the above.
When a country imposes an import quota, its exchange rate
a. rises because the supply of dollars in the market for foreign-currency exchange falls. b. falls because the supply of dollars in the market for foreign-currency exchange rises. c. rises because the demand for dollars in the market for foreign-currency exchange rises. d. falls because the demand for dollars in the market for foreign-currency exchange falls.
Consider the market demand and supply given by the following: Qd=50 - P and Qs = 2.5 + 1.5P.
a) What is the equilibrium price and quantity? b) If the government sets a price floor of $25, what is the surplus/shortage? If the government buys the surplus, what would be the cost to the government?
The country of Doomsville is currently in a recession. The government of Doomsville, in an effort to maintain its tax revenues in a time when incomes are falling, decides to increase the tax rate. Would this policy help or hurt the recession?
A) This policy would likely help Doomsville recover faster. B) This policy would likely make Doomsville's recession worse. C) This policy would likely have no effect on Doomsville's economy. D) This policy would have an unknown effect on Doomsville's economy.