In the Neoclassical Growth Model,if Capital and Labour Grow at the Same

question 55

Multiple Choice

In the Neoclassical growth model,if capital and labour grow at the same rate,we will observe

• A)rising GDP but falling living standards.
• B)rising GDP but no change in living standards.
• C)rising GDP and increasing living standards.
• D)increasing living standards but only for workers using labour-intensive production.
• E)increasing living standards but only for workers using capital-intensive production.