In the Romer Model

question 28

Multiple Choice

In the Romer model.as more labor is devoted to research and development ________.

• A)there is an immediate decrease in output per capita
• B)there is an immediate increase in output per capita
• C)output per capita is unaffected,but the savings rate begins to rise
• D)output per capita is unaffected,but the savings rate begins to fall

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Definitions:

Cash

A form of currency that includes coins and paper notes, used as a medium of exchange for goods and services.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Generating Sales

The process of creating revenue for a company through selling goods or services.

Fixed Assets

Durable, physical assets utilized in running a business, which are not foreseen to be cashed in or used up in the near term.