1. [3 points each] Indicate whether each of the following statements is true or false. Ex- plain briefly. (a) According to the Solow growth model, a reduction in population growth can raise the growth rate of real GDP per capita. (b) In the simple Romer model, the economy may sometimes deviate from the bal- anced growth path. (c) If the number of employed people increases, the unemployment rate falls. (d) Efficiency wage can lead to involuntary unemployment.
1. [3 points each] Indicate whether each of the following statements is true or false. Ex- plain briefly. (a) According to the Solow growth model, a reduction in population growth can raise the growth rate of real GDP per capita. (b) In the simple Romer model, the economy may sometimes deviate from the bal- anced growth path. (c) If the number of employed people increases, the unemployment rate falls. (d) Efficiency wage can lead to involuntary unemployment.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 2SCQ: Explain the difference between property rights and contractual rights. Why do they matter to...
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![1. [3 points each] Indicate whether each of the following statements is true or false. Ex-
plain briefly.
(a) According to the Solow growth model, a reduction in population growth can raise
the growth rate of real GDP per capita.
(b) In the simple Romer model, the economy may sometimes deviate from the bal-
anced growth path.
(c) If the number of employed people increases, the unemployment rate falls.
(d) Efficiency wage can lead to involuntary unemployment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F25f5e778-62dd-4823-8f93-092806f56c7e%2F4849e40a-9fbf-440c-be1b-4b0f59b5f33b%2Fm6x53t_processed.png&w=3840&q=75)
Transcribed Image Text:1. [3 points each] Indicate whether each of the following statements is true or false. Ex-
plain briefly.
(a) According to the Solow growth model, a reduction in population growth can raise
the growth rate of real GDP per capita.
(b) In the simple Romer model, the economy may sometimes deviate from the bal-
anced growth path.
(c) If the number of employed people increases, the unemployment rate falls.
(d) Efficiency wage can lead to involuntary unemployment.
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