If the Production Function Exhibits Increasing Returns to Scale in the Steady

question 54

Multiple Choice

If the production function exhibits increasing returns to scale in the steady state, an increase in the rate of growth of population would lead to:

• A) growth in total output and growth in output per worker.
• B) growth in total output but no growth in output per worker.
• C) growth in total output but a decrease in output per worker.
• D) no growth in total output or in output per worker.

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