In the Romer Model, Output Is Increasing in ________ and Decreasing

question 69

Multiple Choice

In the Romer model, output is increasing in ________ and decreasing in ________.

• A) the saving rate; the depreciation rate
• B) the research share; the growth rate of knowledge
• C) the growth rate of knowledge; the fraction of population in the ideas sector
• D) the growth rate of knowledge; the depreciation rate
• E) the saving rate; the growth rate of knowledge

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Definitions:

Sales Tax

A tax imposed by government authorities on the sale of goods and services, typically calculated as a percentage of the purchase price.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a heavier burden on lower-income individuals.

OECD

An international organisation that works to build better policies for better lives, promoting policies that will improve the economic and social well-being of people around the world.

Progressive Tax System

A tax system where the tax rate increases as the taxable amount or income increases, effectively imposing a higher percentage rate on those who earn more.