Productivity is hardest to measure in which sector?

In the Romer model. as more labor is devoted to research and development ________

A) there is an immediate decrease in output per capita B) there is an immediate increase in output per capita C) output per capita is unaffected, but the savings rate begins to rise D) output per capita is unaffected, but the savings rate begins to fall

An increase in credit market frictions

A) decreases labor supply. B) decreases labor demand. C) decreases consumption demand. D) decreases investment demand.