In the Romer Model, with Decreasing Returns to the Knowledge

question 88

Multiple Choice

In the Romer model, with decreasing returns to the knowledge sector:

• A) the transition dynamics appear very similar to those in the Solow model.
• B) an increase in the research share decreases the growth rate in the short run.
• C) an increase in the research share increases the growth rate in the short and long runs.
• D) a decrease in the research share increases the growth rate in the short run.
• E) There are no level effects.

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Definitions:

Entrepreneurs

Individuals who start, design, and manage a new business venture, often taking on greater than normal financial risks.

Idea Generation Strategies

Techniques and approaches used to generate creative and innovative ideas, often involving brainstorming, research, and collaboration.

Example

A representative instance or case that illustrates a concept, principle, or process.

Freudian Perspective

A psychological theory developed by Sigmund Freud that emphasizes unconscious processes and childhood experiences in shaping personality and behavior.