Using AK Growth Models and Assuming That the Labour Force

question 67

Multiple Choice

Using AK growth models and assuming that the labour force is fixed at the value of 1,

• A) real GDP per worker is greater than real GDP per capita.
• B) real GDP per capita is less than real GDP.
• C) real GDP is greater than real GDP per worker and real GDP per capita.
• D) there is essentially no difference in real GDP, real GDP per worker, and real GDP per capita.

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Definitions:

Modern Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined primarily by competition in a free market.

New Netherland

A 17th-century colonial province of the Dutch Republic that included parts of what are now the northeastern United States, with its capital at New Amsterdam (now New York City).

Dutch Reformed Church

A Christian denomination that originated in the Netherlands during the Protestant Reformation and established a significant presence in colonial America, especially in New York and New Jersey.