Consider an economy that is in steady state according to the Solow model. Now suppose that a temporary foreign aid program builds a new road between two major cities. This change will:
a. Increase capital per worker permanently, followed by temporary positive growth.
b. Increase capital per worker permanently, followed by temporary negative growth.
c. Increase capital per worker temporarily, followed by temporary positive growth
d. Increase capital per worker temporarily, followed by temporary negative growth
Answers (2)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Consider an economy that is in steady state according to the Solow model. Now suppose that a temporary foreign aid program builds a new ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
If the income elasticity of demand for store brand macaroni and cheese is - 3.00, this means that
Answers (1)
Which of the following is an example of a variable cost? A. Hourly labor B. Interest on a loan C. Insurance D. Rent for an office
Answers (2)
Sage Hill Inc. Issues $254,000, 10-year, 10% bonds at 97. Prepare the journal entry to record the sale of these bonds on March 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answers (1)
Fallon Osmond is chairperson of the board of Simple Treats, Inc. Suppose Osmond has just founded Simple Treats, and assume that she considers her home and other personal assets as part of Simple Treats.
Answers (1)
While the domestic airline industry is in the maturity stage of the industry life cycle, the internet-enabled appliance industry is in its growth stage.
Answers (1)
New Questions in Business
Pita Pal sells fast-food franchises. Pita Pal receives $83,000 from a new franchisee for providing initial training, equipment, and furnishings that together have a stand-alone selling price of $83,000.
Answers (1)
If a client chooses to pay premiums other than annually, what can he or she expect?
Answers (1)
Antone Company sells office equipment on July 31, 2017, for $21,000 cash. The office equipment originally cost $72,000 and as of January 1, 2017, had accumulated depreciation of $42,000. Depreciation for the first 7 months of 2017 is $4,600.
Answers (1)
An entrepreneur who plans to open a cuban restaurant in nashville has a 20 percent chance of success. which kind of probability is it
Answers (1)
Which of the following steps in a measuring system involves implementing an effective recognition system?
Answers (1)