Which of the following statements is true?
A) According to the neoclassical growth model of Robert Solow, differences in human capital per worker are the reason for productivity differences between countries.
B) In the long run, an increase in money supply will lead to inflation without leading to economic growth.
C) According to economist Robert Lucas, capital does not flow from rich to poor countries because poor countries have lower marginal product of capital.
D) According to the neoclassical growth model of Robert Solow, countries do not converge with each other in productivity levels because of differences in technology.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is true?
A) According to the neoclassical growth model of Robert Solow, differences in human capital per worker are the reason for productivity differences between countries.
B) In the long run, an increase in money supply will lead to inflation without leading to economic growth.
C) According to economist Robert Lucas, capital does not flow from rich to poor countries because poor countries have lower marginal product of capital.
D) According to the neoclassical growth model of Robert Solow, countries do not converge with each other in productivity levels because of differences in technology.

Which of the Following Statements Is True