In the Romer Model, If an Economy Allocates All of Its

question 101

Multiple Choice

In the Romer model, if an economy allocates all of its labor to production:

• A) it will reduce output
• B) it will reduce the number of ideas it generates
• C) it will increase the number of ideas it generates
• D) it will not generate any ideas
• E) None of these answers are correct.

---

Definitions:

Nominal Account

An accounting ledger account that starts each new accounting period with a zero balance and ends with a closed balance to transfer to a real account.

Retained Earnings

Retained Earnings represent the cumulative amount of net income earned by a company that has not been distributed to shareholders as dividends.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and placed into service.

Debited

An accounting term describing the recording of an increase in assets or a decrease in liabilities and equity.