Initially, the economy is at point B on Figure 10-1 above. According to the Solow model of growth, in the short run, the discovery of a cold fusion process which reduces the cost of energy by 50%, ceteris paribus, will shift the economy from ________
. A) B to H, increasing per capita output without increasing capital per capita
B) B to C, increasing per capita output with increasing capital per capita
C) B to C, increasing per capita output without increasing savings
D) B to I, increasing output, saving and capital per capita
A
Economics
You might also like to view...
What is meant by the “economizing problem”?
Please provide the best answer for the statement.
Economics
Suppose the price of a product rises and the total revenue of sellers increases
A. It can be concluded that the demand for the product is elastic. B. It can be concluded that the supply of the product is elastic. C. It can be concluded that the supply of the product is inelastic. D. No conclusion can be reached with respect to the elasticity of supply.
Economics