Solved

The Most Unsettling Conclusion of the Solow Model Is the Conclusion

Question 10

Multiple Choice

The most unsettling conclusion of the Solow model is the conclusion that once the economy reaches its long-run potential level of income,economic growth simply:


A) declines, leading to what is referred to as a "failed state."
B) matches population growth, with no chance for sustained increases in average income.
C) causes a rapid inflation, leading to an erosion of gains made during the growth period.
D) subsides, as socialism becomes an acceptable form of political economy for the people.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents