In the neoclassical growth model, an increase in the rate of population growth will
A)raise the growth rate of output
B)increase the level of output per capita
C)increase the steady-state capital-labor ratio
D)all of the above
E)only B and C

Question

In the neoclassical growth model, an increase in the rate of population growth will
A)raise the growth rate of output
B)increase the level of output per capita
C)increase the steady-state capital-labor ratio
D)all of the above
E)only  B and C

Quizplus · Accepted Answer

In the neoclassical growth model, an increase in the rate of population growth will raise the growth rate of total output because more workers contribute to higher total production. However, it does not necessarily increase output per capita or the steady-state capital-labor ratio.

In the Neoclassical Growth Model, an Increase in the Rate