In the Neoclassical growth model,whenever diminishing returns applies,increases in the population,other things being equal,are accompanied by

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In the Neoclassical growth model, with diminishing returns, increasing population size will lead to a higher demand for capital per worker, resulting in decreasing marginal productivity of capital and hence lower GDP per capita, which leads to falling living standards. Therefore, option C (increasing GDP and falling living standards) is the correct choice.

In the Neoclassical Growth Model,whenever Diminishing Returns Applies,increases in the Population,other