In the Solow Model with Technological Progress, by Increasing the Efficiency

question 73

Multiple Choice

In the Solow model with technological progress, by increasing the efficiency of labor at rate g:

• A) the real wage and the real rental price of capital both grow at rate g.
• B) the real wage grows at rate g but the real rental price of capital is constant.
• C) the real wage is constant but the real rental price of capital grows at rate g.
• D) both the real wage and the real rental price of capital are constant.

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Definitions:

Environmental Wisdom

The understanding and application of ecological knowledge and principles to make decisions that consider the long-term impact on natural environments.

Natural Principles

Fundamental concepts or laws governing the natural world, which explain patterns observed in the physical universe.

Pollution Control

Measures and strategies implemented to reduce or eliminate the release of pollutants into the environment in order to protect human health and the natural world.

Earth-Centred

A perspective or philosophy that emphasizes the importance of Earth's ecosystems and the intrinsic value of all living and non-living components of the planet.