If the Depreciation and Saving Rates Are Constant, the Economy

question 104

Multiple Choice

If the depreciation and saving rates are constant, the economy eventually will settle in the steady state in the Solow model because of:

• A) the lack of productivity
• B) increasing returns to capital in production
• C) constant returns to capital in production
• D) diminishing returns to capital in production
• E) increasing returns to labor in production

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Definitions:

Problem Solving

The process of identifying a challenge and finding an effective solution for it.

Achievement-oriented Leadership

A leadership style focused on setting challenging goals, emphasizing excellence, and demonstrating confidence in team members' ability to meet objectives.

Directive Leadership

Involves providing specific directions, setting goals, and methods for tasks and closely supervising them.

Supportive Leadership

A leadership style that emphasizes showing concern for employees' well-being, and is characterized by encouraging participation and valuing individuals' inputs.