In the next three years, the federal tax system could be replaced with a national retail sales tax.

Explain the economic assumption that "people are rational."

What will be an ideal response?

The most plausible way to produce a continuous increase in the standard of living within the Solow growth model is to assume

A) continuous technological improvement. B) a positive rate of population growth. C) a zero rate of depreciation. D) continuous increases in the national saving rate. E) continuous growth in the capital stock.