Consider the Neoclassical Growth Model

question 16

Multiple Choice

Consider the Neoclassical growth model.Sustained economic growth in the long run could best be fostered by

• A)expansionary fiscal policy.
• B)decreasing excise taxes on consumer goods.
• C)technological improvements embodied in physical or human capital.
• D)elimination of an output gap.
• E)expansionary monetary policy.

---

Definitions:

Psychophysics

A branch of psychology dealing with the relationship between physical stimuli and their subjective correlates, or perceptions.

Physical Energies

Physical energies refer to the various forms of kinetic and potential energy associated with the motion, position, or structure of physical objects.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the "just noticeable difference."

Auditory Convergence

A phenomenon in which sounds from different sources merge into a single perceived auditory event.