Question: TRUE / FALSE / UNCERTAIN? Explain your answer with 2-3 sentences. (a) The extended Solow model with population growth and technology growth does not

TRUE / FALSE / UNCERTAIN? Explain your answer with 2-3 sentences. (a)

TRUE / FALSE / UNCERTAIN? Explain your answer with 2-3 sentences. (a) The extended Solow model with population growth and technology growth does not have a steady state because output per person always grows. (b) The Romer model explains that to obtain a higher growth rate, we need to allocate more resources to the production of ideas. (c) The market for ideas is difficult to regulate since ideas are non-rival. (d) There should be a price cap for drug companies since their marginal cost is low and the price is not affordable to the poor people. (e) The reverse of fortune was mostly due to Britain conquering the poorer countries and Spain conquering the richer countries.

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a False In the extented Solow model we do have steady state and the output per effective worker and ... View full answer

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