Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital stock is
A) constant.
B) growing at a rate of gA.
C) growing at a rate of gN.
D) growing at a rate of gA + gN.
E) none of the above
D
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Suppose Starbucks currently charges $3.25 per cup for its latte
If Starbucks lowers the price to $3.00 per cup, based on the demand curve in the figure above, its total revenue will ________ because the demand for Starbucks latte is ________ over this price range. A) increase; elastic B) decrease; elastic C) increase; inelastic D) increase; unit elastic E) not change; unit elastic
If efficiency wage theory is valid, we would expect a relatively low premium over the reservation wage when
A) the unemployment rate is low. B) the job requires very little training. C) workers can be easily monitored. D) workers have few other options for employment in the area. E) all of the above