A Change in Which of the Following Can Change the Long-Run

question 2

Multiple Choice

A change in which of the following can change the long-run growth rate of the economy in the Romer model?

• A)investments in public infrastructure
• B)the national saving rate
• C)the fraction of the population engaged in and the productiveness of research and development
• D)government spending and tax rates

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Definitions:

ERG Theory

ERG Theory is a motivational theory developed by Clayton P. Alderfer that categorizes human needs into three basic levels: Existence, Relatedness, and Growth, suggesting that these needs can be pursued simultaneously.

Alderfer

A psychologist known for developing the ERG (Existence, Relatedness, and Growth) theory as an extension of Maslow's hierarchy of needs.

Psychological Growth

The development of an individual’s emotional and cognitive capabilities and their capacity for adaptive behavior and understanding.

Interpersonal Relationships

The connections and interactions between two or more people, which can affect both personal and professional contexts significantly.