In the Simple Solow Model, We Assume

question 51

Multiple Choice

In the simple Solow model, we assume:

• A) the depreciation rate is negative.
• B) net investment is always positive.
• C) TFP equals one.
• D) labor is exogenous.
• E) the saving rate changes frequently.

---

Definitions:

Fight-or-Flight

A physiological reaction to perceived harmful events, attacks, or threats to survival, preparing the body to either confront or flee from the situation.

Allostatic

Relating to or denoting the adaptive processes that maintain homeostasis through the production of mediators such as adrenaline.

Homeostasis

The regulation of an organism's internal environment to maintain stable, constant conditions for life processes.

Fight-or-Flight

A physiological response to perceived harmful events, attacks, or threats to survival, triggering certain bodily functions to either confront or avoid the danger.