According to the _____ model, everything else equal,countries with a larger population experienceper capita GDP growth.IS-MP; lowerRomer; higherSolow; higherMortensen-Pissarides; lower In the short-run model, a negative aggregate demandshock to households' consumption (a decrease in āc)corresponds to anshift of the IS curve.The Central Bank can bring the economy back to itspotential bythe interest rate.inwards; increasingoutwards; increasingoutwards, decreasinginwards; decreasing

Since you have asked multiple questions, we are answering only the first question. To get solutions for another question, kindly upload them separately. Romer's model provides an effective level of output with the given economic indicators. It also states that in the long run, others are an endogenous accumulation of knowledge.Romer's model explains that growth is endogenous in the long run and it is impacted by the variable factors in production. The model further explains that firms operate in the perfect market markets and it is close to the solow model. As described by this model there are increasing returns to scale and the economy faces constant equilibrium growth as a result of the accumulation of knowledge. It can be termed as an increase in population leads to a positive accumulation of knowledge and hence the GDP grows. Hence, option two is correct. Option one is incorrect because the IS-MP model explains the short-run fluctuations in the inflation rate, interest rate, and output level. Option three is incorrect because the Solow model explains the per capita growth rate as an effect of technological advancement. Option four is incorrect because the Mortensen Pissarides model explains the relation between the job search rate and the unemployment rate. It does not consider the complete population but it only considered the labor force. Hence, option two is correct.

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According to the _____ model, everything else equal, countries with a larger population experience per capita GDP growth. IS-MP; lower Romer; higher Solow; higher Mortensen-Pissarides; lower

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

According to the _____ model, everything else equal,
countries with a larger population experience
per capita GDP growth.
IS-MP; lower
Romer; higher
Solow; higher
Mortensen-Pissarides; lower

In the short-run model, a negative aggregate demand
shock to households' consumption (a decrease in āc)
corresponds to an
shift of the IS curve.
The Central Bank can bring the economy back to its
potential by
the interest rate.
inwards; increasing
outwards; increasing
outwards, decreasing
inwards; decreasing

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