# In the Romer model, if an economy’s research share decreases, there will be: A. An immediate increase in output and output growth accelerates B. An immediate decrease in output and output growth slows C. No change in output but output growth slows D. An immediate decrease in output and output growth accelerates E. An immediate increase in output and output growth slows

1 answer

###### Question:

In the Romer model, if an economy’s research share decreases, there will be:

A. An immediate increase in output and output growth accelerates

B. An immediate decrease in output and output growth slows

C. No change in output but output growth slows

D. An immediate decrease in output and output growth accelerates

E. An immediate increase in output and output growth slows

A. An immediate increase in output and output growth accelerates

B. An immediate decrease in output and output growth slows

C. No change in output but output growth slows

D. An immediate decrease in output and output growth accelerates

E. An immediate increase in output and output growth slows

## Answers

AnswerE. An immediate increase in output and output growth slowsExplanation:Option correct E If an economy's share of a researcher decreases there will be an immediate increase in output and output growth will slow. Is important to remember the importance of the Romer model, which priorizes the human capital, as an endogeneous variable.

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