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The Solow Model Implies That Continuous Growth in Productivity at a Rate

Question 32

Multiple Choice

The Solow model implies that continuous growth in productivity at a rate of one percent will result in continuous growth of output per worker at a rate of 1.43%.Thus,if at a point in time output per worker is 270 and productivity rises by one percent,the resulting level of output per worker is ________.


A) 386
B) 273
C) 274
D) 277

Correct Answer:

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