Suppose the Parameters of the Romer Model Take the Following $\bar { A } _ { 0 } = 10$

question 104

Multiple Choice

Suppose the parameters of the Romer model take the following values: $\bar { A } _ { 0 } = 10$ , $\bar { \ell } = 0.01 , \bar { z } = 1 / 500 \text {, and } \bar { L } = 10,000$
) What is the per capita income of this country in the tenth period, y₁₀?

• A) about 6.13
• B) about 61.3
• C) about 12.0
• D) about 11.9
• E) about 10.9

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including direct materials and labor.

Merchandise Inventories

The total value of a company's goods that are ready for sale but have not been sold yet.

Cash Disbursements

Payments made by a business in cash, covering expenses such as operating costs and purchase of assets.

Merchandise Inventory

Goods that are purchased and held for resale by retail or wholesale businesses, representing a current asset on the balance sheet.