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A Key Assumption in an Endogenous Growth Model with Both

Question 37

Multiple Choice

A key assumption in an endogenous growth model with both labor and capital inputs in the production function is that


A) the share of capital is larger than the share of labor
B) the share of capital and labor have to be equal
C) better technology is a byproduct of more capital investment
D) there are no external returns to capital
E) long-run growth comes solely from technological progress

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