Author Question: The Solow model implies that continuous growth in productivity at a rate of one percent will result ... (Read 92 times)

Davideckstein7 · **on:** Jun 30, 2018

The Solow model implies that continuous growth in productivity at a rate of one percent will result in continuous growth of output per worker at a rate of 1.43.

Thus, if at a point in time output per worker is 270 and productivity rises by one percent, the resulting level of output per worker is ________. A) 386
B) 273
C) 274
D) 277

Question 2

If the demand for money is Md = 100 +.25Y 100r and then the increase in money demand rises by 100, the LM curve shifts to the

a. right by 400.
b. right by 100.
c. left by 200.
d. left by 400.
e. none of the above.