Figure 5.6 A

Multiple Choice

Figure 5.6 a.
an increase in the depreciation rate.
d.
a decrease in the capital stock.
b.
a positive TFP shock.
e.
both a and c.
c.
a decline in the saving rate.
-The analysis of how an economy approaches the steady state is called:

A) investment.
B) economic growth.
C) transition dynamics.
D) saving.
E) depreciation.