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The Solow Growth Model

Question 31

Multiple Choice

The Solow growth model


A) cannot explain differences in standards of living across countries.
B) predicts differences in standards of living if total factor productivity is different in different countries.
C) can explain why output grows at a relatively high rate when capital per worker is high.
D) can explain why output grows at a low rate when population growth is low.
E) predicts that income per capita will diverge across countries.

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