The behavior of investment and real GDP in the United States ...

[ts19998]

The behavior of investment and real GDP in the United States after the 1990s
 
  A) is not consistent with the two-period model with production.
  B) is consistent with the effects of an increase in the government deficit in the two-period model with production.
  C) is consistent with the effects of an increase in optimism about future total factor productivity in the two-period model with production.
  D) is consistent with the effects of a decrease in the government deficit in the two-period model with production.

Question 2

In the endogenous growth model presented in the text,
 
  A) consumption grows faster than human capital.
  B) human capital grows faster than consumption.
  C) both consumption and human capital grow at the same rate.
  D) neither consumption nor human capital grows in the steady state.

[mcarey591]

Answer to Question 1

C

Answer to Question 2

C

[ts19998]

TYSM

[mcabuhat]

Gracias!