Author Question: The Solow growth model tells us that the standard living in country A can be higher than in country ... (Read 122 times)

cookcarl · **on:** Jun 30, 2018

The Solow growth model tells us that the standard living in country A can be higher than in country B for all the following reasons, except

A) country A has lower population growth than country B.
B) country A has a higher savings rate than country B.
C) country A has a higher depreciation rate than country B.
D) country A has higher total factor productivity than country B.

Question 2

Stabilization policy is to be applied if all of the following applies except

A) authorities have good information about the state of the economy.
B) policies can be applied quickly.
C) markets are out of equilibrium.
D) there is no output gap.