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 decreases 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) There are no level effects.
Correct Answer:
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