A striking conclusion of the Solow model is that in the absence of productivity growth, in the long run
A) the economy reaches a steady state.
B) consumption per worker equals the capital stock per worker.
C) consumption per worker equals output per worker.
D) consumption per worker equals investment per worker.
A
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According to aggregate demand and supply analysis, America's involvement in the Vietnam War had the effect of
A) increasing aggregate output, lowering unemployment, and raising the inflation. B) decreasing aggregate output, lowering unemployment, and lowering the inflation. C) increasing aggregate output, raising unemployment, and raising the inflation. D) decreasing aggregate output, raising unemployment, and lowering the inflation.
In order to convert nominal gross domestic product (GDP) to real gross domestic product (GDP), we must divide: a. real GDP by the price index
b. nominal GDP by the price index. c. the price index by nominal GDP. d. the price index by real GDP. e. nominal GDP by 100.