In the Romer Model, ________ Is the Resource Constraint $K = \bar { K }$

question 82

Multiple Choice

In the Romer model, ________ is the resource constraint.

• A) \(K = \bar { K }\) and \(L = \bar { L }\)
• B) \(L _ { t } = L _ { y t } + L _ { a t }\)
• C) \(A _ { t } = \infty\)
• D) \(Y _ { t } = A _ { t } K _ { t } ^ { a } L _ { t } ^ { 1 - \alpha }\)
• E) There is no resource constraint.

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Definitions:

Cost System

A method used by firms to track, record, and analyze costs associated with their operations, typically to improve efficiency or profitability.

Kilos

A metric unit of mass equal to one thousand grams or approximately 2.20462 pounds.

Direct Materials

Raw materials that can be directly traced to the production process and are a significant part of the finished product.

Raw Material

The basic substances or components that are processed and transformed into finished goods in manufacturing.