1. On the Solow Diagram, an increase in productivity is shown by A, an upward sh

Question

1. On the Solow Diagram, an increase in productivity is shown by

    
          A,
           an upward shift of the depreciation plus capital dilution line
B.an upward shift of the investment function
C.a downward shift of the depreciation plus capital dilution line
D. a downward shift of the investment function

    
          
2. If capital per-worker is rising, then ________. Answer                                         
           depreciation is equal to investment.                             
           depreciation is greater than investment.                             
           depreciation is less than investment.                             
           depreciation is less than consumption.        

Explanation / Answer

1. D. a downward shift of the investment function

2. d depreciation is less than consumption.

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