Suppose Two Countries Are Identical in Every Way with the Following

question 12

Multiple Choice

Suppose two countries are identical in every way with the following exception. Economy A has a higher rate of depreciation (6) than economy B. Given this information, we know with certainty that:

• A) steady state consumption in A and B are the same.
• B) steady state growth of output per worker is higher in B than in A.
• C) steady state growth of output per worker is higher in A than in B.
• D) steady state consumption in A is lower than in B.
• E) steady state consumption in A is higher than in B.

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Definitions:

Retrieving

The process of getting information out of memory storage and back into conscious awareness.

Videotape

A magnetic tape used for recording and playing back visual and auditory information.

Soundtrack

The audio component of a movie, video game, or television program, including music, dialogue, and sound effects.

Source Misattribution

A memory error where a person is unable to remember the correct source of a memory, leading to incorrect assumptions about its origin.