Assume a Neoclassical Growth Model with Constant Returns to Scale

question 8

Multiple Choice

Assume a neoclassical growth model with constant returns to scale.Which of the following statements is TRUE?

• A)a declining population growth rate will increase per-capita income
• B)an increase in the savings rate will permanently increase the growth rate of output
• C)an increase in the depreciation rate will increase the capital-labor ratio
• D)technological advances will have no effect on the long-run growth rate of output
• E)none of the above

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Definitions:

Conj

An abbreviation often used for "conjunction," a logical operation that combines two conditions or statements, resulting in truth only if both elements are true.

Inference Forms

Standardized patterns of reasoning, where specific premises lead to a certain conclusion.

Inference Forms

Structured patterns of reasoning or argumentation that derive conclusions from premises based on logical principles.

MP

Abbreviation for "Modus Ponens," a logical argument form where from premises 'If P then Q' and 'P,' one can conclude 'Q.'