If a Natural Disaster Destroys a Large Portion of a Country's

question 113

Multiple Choice

If a natural disaster destroys a large portion of a country's capital stock but the saving and depreciation rates are unchanged, the Solow model predicts that the economy will grow and eventually reach:

• A) the same steady-state level of output as it would have before the disaster.
• B) a higher steady-state level of output than it would have before the disaster.
• C) a lower steady-state level of output than it would have before the disaster.
• D) Not enough information is given.
• E) None of these answers is correct.

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Definitions:

Human Services

A field focused on meeting human needs through an interdisciplinary knowledge base, focusing on prevention as well as remediation of problems, and maintaining a commitment to improving the overall quality of life of service populations.

Ethnic Minorities

are groups of people who differ in race or color or in national, religious, or cultural origin from the dominant population.

European Americans

Individuals in the United States who trace their ancestry to Europe, forming one of the various ethnic groups in the country.

Chronic Inflammation

A long-term inflammatory response that can negatively affect tissues and organs, leading to various diseases.