Multiple Choice
In the Solow growth model,if the level of investment is greater than depreciation at the initial capital-labour ratio,then △k is ________,and the capital-labour ratio ________ toward the steady-state capital-labour ratio.
A) greater than zero; increases
B) greater than zero; decreases
C) less than zero; increases
D) less than zero; decreases
Correct Answer:
Verified
Correct Answer:
Verified
Q58: What is break-even investment,and what happens to
Q59: Suppose k = y¹/²,total factor productivity is
Q60: If the capital-labour ratio equals 1.5 in
Q61: If the actual capital-labour ratio is below
Q62: Figure 8.2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 8.2
Q64: If the capital-labour ratio equals 1.5 in
Q65: Figure 8.2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 8.2
Q66: As the capital-labour ratio increases,break-even investment<br>A) increases
Q67: Using AK growth models and assuming that
Q68: Describe the relationship between the production function,the