In the Neoclassical Growth Model, If the Capital-Labor Ratio Is

question 4

Multiple Choice

In the neoclassical growth model, if the capital-labor ratio is below the (optimal) steady-state level, we should expect that

• A)economic growth will continue to decline unless technological advances are made
• B)income per capita will decrease since gross investment is not sufficient to supply new workers with adequate capital
• C)the savings rate will decline due to the lack of economic growth
• D)all of the above
• E)none of the above

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Definitions:

Episodic Memories

Memories of specific events or episodes, including context details like when and where they occurred, and endowed with emotional charge.

Retroactive Interference

The interference of new learning with the ability to retrieve material learned previously.

Prospective Memory

The element of memory responsible for recalling intended actions or future intentions that were planned to be remembered at a later date.

Chunking

A cognitive strategy for improving memory by organizing information into manageable and meaningful groups or units.