In the Romer model with decreasing returns to the knowledge sector,
A) the transition dynamics appear very similar to those in the Solow model.
B) an increase in the research share increases the growth rate in the short run.
C) an increase in the research share increases the growth rate in the short and long runs.
D) a decrease in the research share increases the growth rate in the short run.
E) Both a and b are correct.
Correct Answer:
Verified
Q51: In the Romer model, _ is the
Q53: Because there are no diminishing returns in
Q54: In the ideas sector production function,
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