If an Economy Is Growing at 2 Percent a Year

question 50

Multiple Choice

If an economy is growing at 2 percent a year but its rate of technology growth is 1 percent a year,then this country must be:

• A)below its steady state level of capital per worker.
• B)expected to grow slower in the future.
• C)has a savings rate that is too low.
• D)none of the above.

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Definitions:

Savings

In learning and memory, the measure of efficiency in relearning material previously learned and partially or completely forgotten.

Avoidance-Avoidance Conflict

A mental struggle that arises when an individual is forced to decide between two equally undesirable alternatives.

Clubbed

A condition, typically referring to the broadening and thickening of the ends of fingers or toes, often associated with underlying medical conditions.

Power Outage

A situation where there is a temporary loss of electrical power to an area.