These questions are all related - hence I combined them.Thanks
Suppose that in order to limit the transmission of illness anddisease, governments impose travel restrictions to with theconsequence of preventing trade. Which variable of the Solow GrowthModel changes to best capture the impact of this event?
For as long as this restriction stays in place, what is theimplication for the steady state level of capital?
| | indeterminate |
| | remain unchanged |
| | decrease |
| | increase |
Because of the change, the immediate consequence will be for thesteady state level of investment to
| | increase |
| | remain unchanged |
| | decrease |
| | indeterminate |
According to the Solow growth model, the steady state level ofconsumption will be
I. lower than the steady state before the event change.
II. lower than the level of consumption immediately after theevent change.
| | both I and II are true |
| | I is true but not II |
| | neither I nor II are true |
| | II is true but not I |
