In the neoclassical growth model, an increase in the saving rate will
a. increase the long-run equilibrium rate of growth in output.
b. reduce the long-run equilibrium rate of growth in output.
c. leave the long-run equilibrium rate of growth in output unchanged.
d. affect the long-run equilibrium rate of growth in output but the direction of the effect is uncertain.
A
You might also like to view...
If the price level rises by 4 percent and workers' money wage rates increase by 2 percent, then the
A) quantity of labor supplied decreases. B) quantity of labor supplied increases. C) quantity of labor supplied does not change because there is no change in the real wage rate. D) the supply curve of labor shifts rightward.
A monopolistically competitive firm is producing 50 units of output in the short run where marginal cost is $3.00, average total costs are $5.00, price is $4.50, average variable cost is $4.00, and marginal revenue is $3.00. How much profit is the firm
making? What output recommendation would you make for the firm? What will be an ideal response?