The Solow Growth Model Predicts That a Country's Standard of Living

question 15

Multiple Choice

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

• A)there is sustained increases in government spending.
• B)there is sustained increases in total factor productivity.
• C)there is sustained increases in the population.
• D)there is sustained increases in the labour force.
• E)there is sustained increases in the capital stock.

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