In the neoclassical growth model, if two countries are exactly ...

[s.tung]

In the neoclassical growth model, if two countries are exactly the same but one has a lower permanent budget deficit, we would expect that country to have
 
  a. higher output, a higher capital-to-labor ratio, and higher output growth in the steady state.
  b. the same output and capital-to-labor ratio, but higher output growth in the steady state.
  c. higher output, the same capital-to-labor ratio, and the same output growth in the steady state.
  d. higher output, a higher capital-to-labor ratio, and the same output growth in the steady state.

Question 2

There is no possible economic relationship between the birth rate and the availability of arable land.
 
  Indicate whether the statement is true or false

[bobsmith]

Answer to Question 1

D

Answer to Question 2

False

[s.tung]

Thanks for the timely response, appreciate it

[mjenn52]

Great answer, keep it coming