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In the Romer Model, If an Economy's Research Share Decreases

Question 45

Multiple Choice

In the Romer model, if an economy's research share decreases, there will be:


A) an immediate decrease in output and output growth slows
B) an immediate increase in output and output growth slows
C) an immediate increase in output and output growth accelerates
D) an immediate decrease in output and output growth accelerates
E) no change in output but output growth slows

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