4. What is true about the Solow and Romer model? Select all that apply. (a) GDP per capita never grows in the Solow model. (b) A one-time permanent increase in the workforce can lead to permanently higher growth in GDP per capita in the Romer model. (c) Capital accumulation is a source of transitory growth in GDP per capita. (d) Population growth leads to permanent growth in GDP per capita in the Solow model. (e) The Romer model provides a theory of long-run growth in GDP per capita. Answer: 5. According to the short-run model, what happens to inflation when short-run output is positive? Select all that apply. (a) The inflation rate will start increasing. (b) The change in the inflation rate is negative. (c) The change in the inflation rate is positive. (d) The inflation rate will continue to increase for as long as short-run output is positive. (e) The inflation rate does not depend on short-run output