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Which of the Following Is Always True After an Economy

Question 23

Multiple Choice

Which of the following is always true after an economy reaches a balanced growth equilibrium?


A) The growth rate of output equals the rate of depreciation.
B) The growth rate of capital is equal to the savings rate.
C) The growth rate of capital is equal to the growth rate of the effective workforce.
D) Population growth is zero.
E) The growth rate of output equals the rate of saving.

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