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In the Endogenous Growth Model with Constant Marginal Product of Capital

Question 22

Multiple Choice

In the endogenous growth model with constant marginal product of capital,


A) output in poor nations may not grow faster than output in rich nations
B) labor grows more rapidly than output
C) increasing investment has no effect on the economy's growth rate
D) a steady state occurs at less than full employment
E) the capacity utilization rate equals the rate of depreciation

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