Using the Solow Model, suppose the initial depreciation is 0.02 and it increases to 0.10. You would expect the level of steady state capital and output to a) Increase b) Drop c) Remain the same

d) Impossible to determine 6- The optimal social investment in R&D in general will be ______ than the private optimal investment in R&D a) Less b) More c) The same d) Impossible to determine 7- Which of these is the best example of cyclical unemployment? a) Sarah recently graduated from college, and is looking for a job as an economist b) Due to the introduction of automation, Jack lost his job as a factory worker c) Milton was laid off from his job as an accountant due to recession d) None of the above are examples of cyclical unemployment 8- If the real growth rate is 10%, then real GDP will double in _____ years (Use the Rule of 70) a) 7 b) 8 c) 9 d) 10

Explain reasons for correct and incorrect options. I WILL UPVOTE.