A Central Lesson of the Solow Model Is a Bit

question 10

Multiple Choice

A central lesson of the Solow model is a bit of a surprise:

• A) Capital accumulation cannot serve as the engine of long-run per capita economic growth.
• B) Capital accumulation is the only engine of long-run per capita economic growth.
• C) Consumption is the only engine of short-run per capita economic growth.
• D) Saving rates serve as the engine of long-run per capita economic growth.
• E) The initial capital stock plays a large part in long-run economic growth.

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Definitions:

Assembly Language

A low-level programming language that translates human-readable code into machine code understood by a computer's CPU.

Assembly Code

A low-level programming language that is closely related to the machine code instruction set of a computer's CPU.

Assembler

A type of computer program that translates assembly language into machine language.

Bytecode Instruction

An instruction in the form of binary code that can be executed by a virtual machine, typically used in Java.