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In the Romer Model, with Decreasing Returns to the Knowledge

Question 113

Multiple Choice

In the Romer model, with decreasing returns to the knowledge sector:


A) the number of researchers is irrelevant to long-term per capita income.
B) more researchers produce more ideas, raising the long-run growth rate of per capita income.
C) more researchers produce fewer ideas, raising the long-run growth rate of per capita income.
D) more researchers produce more ideas, raising the long-run level of per capita income.
E) more researchers cause the knowledge stock to contract.

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