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In the Solow model, if investment is depreciation, the capital stock a. equal to; declines b.
greater than; declines c. greater than; grows d. equal to; grows e. less than; grows QUESTION 5
An economy's is/are equal to its a. investment; government expenditures b. taxes; net exports c.
expenditure on goods; expenditure on services d. consumption; income e. expenditure on goods
and services; output QUESTION 6 When a lower-income economy's GDP is able to "catch up"
with a higher-income economy's GDP, this behavior is related to an important concept called
economic convergence. True False

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