In the long run, a reduction in productivity will cause
A) an increase in the capital—labor ratio and an increase in consumption per worker.
B) an increase in the capital—labor ratio and a decrease in consumption per worker.
C) a decrease in the capital—labor ratio and a decrease in consumption per worker.
D) a decrease in the capital—labor ratio and an increase in consumption per worker.
C
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The Solow model is ________
A) the basic model of how technology changes over time B) the foundation for the classical economic thought of Adam Smith C) one of the dominant explanations of the business cycle D) based on the notion of diminishing marginal product of capital and labor
During World War II, _______ percent of the United States' output was devoted to the war effort.
Fill in the blank(s) with the appropriate word(s).