In the Malthusian model, suppose there is a positive one-off technological shock (such as an improved seed). Read the following statements and select the correct one.

Question

Answer

Malthus’ Law states that an increase in productivity will result in both increased population and wages in the long run.

Answer

There is an immediate and permanent rise in the average product of labour.

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The population initially rises but then falls to the pre-technological shock level.

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Income initially rises but then falls to the subsistence level in equilibrium.

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In the Malthusian model, suppose there is a positive one-off technological shock...

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