Both Romer and Solow develop models of economic growth sharing the following hypotheses: a. Economic growth is subject to increasing returns to scale owing to learning-by-doing and the capture of positive spillovers. b. Economic growth yields increasing returns because of innovation and knowledge creation yielding non-rival goods. c. Economic growth is such that social returns to investment and innovation exceed the private returns to such endeavors. d. Economic growth can be sustained indefinitely by increases in A or in technology. Which of the following policy would not simultaneously capture the positive spillovers in Romer's endogenous growth model and shift f(k) upward in the Solow classical model of economic growth: - a. Public investment in post-secondary education and human 25. capital formation b. Public investment in research and development (R&D) c. Promotion of accommodating regulatory and institutional change. d. An increase in unemployment compensation from 26 weeks to 52 weeks.

Both Romer and Solow develop models of economic growth sharing the following hypotheses: a. Economic growth is subject to increasing returns to scale owing to learning-by-doing and the capture of positive spillovers. b. Economic growth yields increasing returns because of innovation and knowledge creation yielding non-rival goods. c. Economic growth is such that social returns to investment and innovation exceed the private returns to such endeavors. d. Economic growth can be sustained indefinitely by increases in A or in technology. Which of the following policy would not simultaneously capture the positive spillovers in Romer's endogenous growth model and shift f(k) upward in the Solow classical model of economic growth: - a. Public investment in post-secondary education and human 25. capital formation b. Public investment in research and development (R&D) c. Promotion of accommodating regulatory and institutional change. d. An increase in unemployment compensation from 26 weeks to 52 weeks.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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