Suppose,due to the Effects of a Military Conflict That Has

question 26

Multiple Choice

Suppose,due to the effects of a military conflict that has ended,that a country experiences a large reduction in its capital stock.Assume no other effects of this event on the economy.Which of the following will tend to occur as the economy adjusts to this situation?

• A)a relatively low growth rate for some time
• B)a relative high growth rate for some time
• C)zero growth for some time, followed by a gradually increasing growth rate
• D)positive growth, followed by negative growth, and then zero growth
• E) none of the above

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