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A Central Lesson of the Solow Model Is a Bit

Question 10

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A central lesson of the Solow model is a bit of a surprise:


A) Capital accumulation cannot serve as the engine of long-run per capita economic growth.
B) Capital accumulation is the only engine of long-run per capita economic growth.
C) Consumption is the only engine of short-run per capita economic growth.
D) Saving rates serve as the engine of long-run per capita economic growth.
E) The initial capital stock plays a large part in long-run economic growth.

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