If the savings rate increases in the Solow growth model
A) output per capita increases in the long run.
B) the growth rate in output per capita increases in the long run.
C) capital per worker grows at a higher rate in the long run.
D) the investment rate declines.
E) output per capita falls in the long run.
Correct Answer:
Verified
Q41: Long-run growth in the standard of living
Q42: Q43: The golden rule savings rate is achieved Q44: Growth in real GDP per-capita in Canada Q45: The Solow residual attempts to measure the Q47: The Golden Rule Quantity of capital per Q48: When capital is accumulated at the rate Q49: The Solow growth model accounts for Q50: Growth accounting, popularized by Robert Solow, attempts Q51: Growth accounting attributes growth in real GDP
A) the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents