Prescott interpreted fluctuations in the Solow residual as evidence that:
A) technology shocks are an important source of short-run economic fluctuations.
B) the Solow growth model does not converge to a steady-state equilibrium.
C) endogenous growth models are better explanations of growth than the Solow model.
D) the marginal product of labour fluctuates more than the marginal product of capital.
Correct Answer:
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Q42: In the two-sector endogenous growth model, the
Q44: When capital increases by ΔK units and
Q46: The Solow residual will fall even if
Q48: If the production function is Y =
Q49: An alternative to Prescott's explanation of the
Q50: Labour hoarding refers to:
A)keeping workers in low-wage
Q51: In the two-sector endogenous growth model, income
Q52: Total factor productivity may be measured by:
A)subtracting
Q67: In a steady state with population growth
Q74: If the per-worker production function is y
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