According to the Solow Model,given the Levels of Total Efficiency

question 213

Multiple Choice

According to the Solow model,given the levels of total efficiency units of labor and technology,________.

• A) increases in the saving rate is the sole reason for sustained economic growth
• B) increases in the rate of physical capital accumulation can be the sole reason for sustained economic growth
• C) there is a maximum fixed level of GDP that an economy can achieve by increasing saving
• D) the physical capital stock does not play any role in the determination of the steady-state equilibrium level of GDP

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