Multiple Choice
Prescott interpreted fluctuations in the Solow residual as evidence that:
A) technology shocks are an important source of short-run economic fluctuations.
B) the Solow growth model does not converge to a steady-state equilibrium.
C) endogenous growth models are better explanations of growth than the Solow model.
D) the marginal product of labor fluctuates more than the marginal product of capital.
Correct Answer:
Verified
Correct Answer:
Verified
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