Consider the Neoclassical Growth Model

question 93

Multiple Choice

Consider the Neoclassical growth model. The effect of an increase in population (or the labour force) in an economy, with everything else held constant, is

• A)an increasingly aging population.
• B)a decrease in the capital- output ratio.
• C)an inward shift of the production possibilities boundary.
• D)an increase in per capita national income.
• E)a decrease in per capita output.

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