In Neoclassical Growth Theory, If the Rate of Return on Capital

question 35

Multiple Choice

In neoclassical growth theory, if the rate of return on capital increases due to a technological advance, then

• A)the rate of return on capital will eventually decline.
• B)the rate of return on capital will never decline.
• C)real GDP per hour of labour will decrease.
• D)population growth will explode.
• E)capital per hour of labour will decrease.

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Definitions:

Less Aggressive

Characterized by milder or more restrained forms of aggression, suggesting a more passive or gentle approach.

Medulla

Refers to the medulla oblongata, the lower portion of the brainstem, which controls vital functions such as heart rate, breathing, and blood pressure.

Cerebellum

Located at the skull's posterior in vertebrates, this brain region is tasked with the coordination and management of muscle movements.

Physical Pleasure

The sensation of bodily satisfaction or enjoyment, often associated with fulfilling basic needs or desires.