If there are decreasing returns to the ideas stock in the knowledge sector,
A) the Romer model cannot explain sustained growth.
B) the Romer model can explain an economy that reaches its steady state.
C) the Romer model can explain sustained growth.
D) the Romer model cannot explain why economies' saving rates differ.
E) the Romer model cannot explain why the output sector exhibits decreasing returns.
Correct Answer:
Verified
Q43: In the Romer model, the Mexican economy:
A)
Q44: Suppose the parameters of the Romer model
Q45: Idea accumulation in the Romer model exhibits:
A)
Q46: Suppose the parameters of the Romer model
Q48: Suppose the Romer model parameters in East
Q50: If East and West Timor are identical
Q53: Because there are no diminishing returns in
Q54: In the ideas sector production function,
Q62: In the Romer model, if an economy's
Q72: Figure 6.2: Romer Model: Per Capita Output
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