The Solow Growth Model

question 1

Multiple Choice

The Solow growth model

• A)predicts differences in standards of living if total factor productivity is different in different countries.
• B)predicts that income per capita will diverge across countries.
• C)can explain why output grows at a relatively high rate when capital per worker is high.
• D)can explain why output grows at a low rate when population growth is low.
• E)cannot explain differences in standards of living across countries.

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