The Solow Model Demonstrates That

question 3

Multiple Choice

The Solow model demonstrates that

• A)in the absence of productivity growth, economic growth will turn negative in the long run.
• B)in the absence of productivity growth, economic growth will reach a steady state of zero per-capita growth in the long run.
• C)productivity growth must exceed the rate of growth in the population to avoid a steady state in the long run.
• D)productivity growth will inevitably decline due to diminishing marginal productivity.

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