Convergence theory suggests that when less developed countries begin to develop, they typically have higher growth rates as they catch up with more developed nations.

The discretionary change of government expenditures or taxes to achieve national economic goals is

A) a direct expenditure upset. B) fiscal policy. C) Ricardian-equivalence theorem. D) supply-side economics.

In the Solow model, if f(k) = 6k0.5, s = 0.1, n = 0.1, and d = 0.2, what is the value of c at equilibrium?

A) 10 B) 10.4 C) 10.8 D) 11.2