In a Neoclassical Growth Model in Which a One-Time Advance

question 37

Multiple Choice

In a neoclassical growth model in which a one-time advance in technology occurs we could expect

• A)the level of saving and investment to increase until a new and higher steady-state capital-labor ratio is reached
• B)the level of income per capita to increase but the steady-state growth rate of output to remain unaffected
• C)the level of output for any given capital-labor ratio to increase
• D)all of the above
• E)none of the above