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Suppose the Parameters of the Romer Model Take the Following Aˉ0=10\bar { A } _ { 0 } = 10

Question 18

Multiple Choice

Suppose the parameters of the Romer model take the following values: Aˉ0=10\bar { A } _ { 0 } = 10 , ˉ=0.01,zˉ=1/500, and Lˉ=10,000\bar { \ell } = 0.01 , \bar { z } = 1 / 500 \text {, and } \bar { L } = 10,000
) What is the growth rate of this country?


A) 2 percent
B) 20 percent
C) 0.2 percent
D) 10 percent
E) 0.01 percent

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