In a neoclassical growth model, a decline in population growth will
A)shift the production function down
B)shift the savings function down
C)decrease the slope of the investment requirement line
D)all of the above
E)only A and C

Question

Quizplus · Accepted Answer

In a neoclassical growth model, a decline in population growth decreases the slope of the investment requirement line because less investment is needed to maintain the capital stock per worker as the population (and thus the workforce) grows more slowly.

In a Neoclassical Growth Model, a Decline in Population Growth