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help with following mcq 1) Ceteris Paribus, which one of the following will cause a reduction in output per worker in the long-run run? A.Capital

help with following mcq

1) Ceteris Paribus, which one of the following will cause a reduction in output per worker in the long-run run?

A.Capital accumulation or technological progress.

  • B.An increase in the savings rate.
  • C.Capital accumulation.
  • D.An increase in the number of workers.

2)Assume that there are decreasing returns to capital and labour and constant returns to scale. Suppose that inputs of both capital and labour decrease by 5%. Given this information, we know that output (Y) will,

  • A.not change.
  • B.decrease by 5%.
  • C.decrease by less than 5%.
  • D.will decrease by more than 5% but less than 10%

3)Assume that a country has the saving function: S = 150 + 0.45Y. If government expenditure increases by 100, what will the multiplier effect be?

  • A.145.25
  • B.333.33
  • C.181.82
  • D.754.25

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