Assume the Production Function in an Economy Is Y =

Multiple Choice

Assume the production function in an economy is Y = AK,where Y = output,A = productivity,and K = capital.This means that

A) the economy can grow forever.
B) the growth will come to an end because of diminishing marginal productivity.
C) the neoclassical growth model prevails.
D) the marginal product of capital depends on the size of capital stock.