Figure 6.2: Romer Model: Per Capita Output

question 111

Multiple Choice

Figure 6.2: Romer Model: Per Capita Output
-In the Romer model, if an economy's population increases:

• A) output growth decelerates.
• B) output immediately increases and output growth slows.
• C) output immediately decreases and output growth slows.
• D) output immediately decreases and output growth accelerates.
• E) output growth accelerates.

---

Definitions:

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Long-Term Capital Gains

Profits from the sale of an asset held for more than a specified period, typically taxed at a lower rate than short-term gains.

Dividends

Payments made by a corporation to its shareholder members, typically from profits or reserves.

Ordinary Income

Income earned from conducting standard business operations, as opposed to capital gains or investment income.