In the Romer Model, the Growth Rate of Knowledge Is $\frac { \Delta A _ { t + 1 } } { A _ { t } } = \bar { \ell }$

question 73

Multiple Choice

In the Romer model, the growth rate of knowledge is given by:

• A) \(\frac { \Delta A _ { t + 1 } } { A _ { t } } = \bar { \ell }\)
• B) \(\Delta A _ { t + 1 } = \frac { \bar { z } \bar { \ell } \bar { L } } { A _ { t } }\)
• C) \(\frac { \Delta A _ { t + 1 } } { A _ { t } } = \bar { z } \bar { l }\)
• D) \(\frac { \Delta A _ { t + 1 } } { A _ { t } } = \bar { z } \bar { \ell } \bar { g }\)
• E) \(\frac { \Delta A _ { t + 1 } } { A _ { t } } = \bar { z } \bar { l } \bar { L }\)

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Definitions:

Normal Balance

The side of the accounting equation on which increases to an account are recorded, typically debit for assets and expenses, and credit for liabilities, equity, and revenue.

T Account

A graphical representation of a general ledger account that depicts how any changes to that account are reflected on the debit and credit side.

Ledger

A book or collection of accounts in which account transactions are recorded.

Trial Balance

A bookkeeping report that lists the balances in each of an organization's general ledger accounts at a specific point in time.