In the Solow Growth Model During the Transition an Increase

question 40

Multiple Choice

In the Solow growth model during the transition an increase in technology:

• A)lowers the growth rate of output per worker.
• B)does not change the growth rate of output per worker.
• C)raises the growth rate of output per worker.
• D)causes the growth rate of output per worker to fall to zero.

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Definitions:

Dementia

A decline in cognitive function beyond what might be expected from normal aging, affecting memory, thinking, orientation, comprehension, calculation, learning capacity, language, and judgment.

Dummy Variable

A variable used to model the effect of categorical independent variables. A dummy variable may take only the value zero or one.

Categorical Independent Variables

Variables that divide subjects into groups but do not allow for any kind of mathematical operation among groups.

Regression Model

The equation that describes how y is related to x and an error term; in simple linear regression, the regression model is y = b0 + b1x + e.