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Q2. Consider an economy described by a standard growth model with (initially) no population growth and no growth in the efciency of technology. Suppose you

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Q2. Consider an economy described by a standard growth model with (initially) no population growth and no growth in the efciency of technology. Suppose you are told that the change in the capital stock and in output over time can be illustrated as follows: time Which of the changes described below, if they occurred, could plausibly correspond to the graph above? i. A bestselling new self-help book results in consumers becoming more patient and forward-looking. ii. A \"businessman" is elected to lead the country. Competition & anti-trust laws are no longer properly enforced, so rms' demand curves become permanently more inelastic. iii. A large fraction of the population is killed by an incident in which a new bioweapon is accidentally released from a military lab. None of the economy's capital is destroyed, and no one expects this to happen ever again. iv. Scientists in New York nd that a single bite from a radioactive spider can greatly increase the productivity of human workers with no harmful side effects. But since there are only a handful of the radioactive spiders available, the human population is only gradually treated (i.e. bitten) over a period of many years. A) i. is plausible, ii. is plausible, iii. is plausible, iv. is plausible B) i. is plausible, ii. is plausible, iii. is plausible, iv. is not plausible C) i. is plausible, ii. is plausible, iii. is not plausibie, iv. is plausible D) i. is plausible, ii. is plausible, iii. is not plausible, iv. is not plausible E) i. is plausible, ii. is not plausible, iii. is plausible, iv. is plausible F) i. is plausible, ii. is not plausible, iii. is plausible, iv. is not plausible G) i. is plausible, ii. is not plausible, iii. is not plausible, iv. is plausible H) i. is plausible, ii. is not plausible, iii. is not plausibie, iv. is not plausible I) i. is not plausible, ii. is plausible, iii. is plausible, iv. is plausible

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