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In Neoclassical Growth Theory, Average Material Living Standards in an Economy

Question 3

Multiple Choice

In Neoclassical growth theory, average material living standards in an economy could fall when


A) additional units of labour are added to the other factors.
B) there is a decline in the population.
C) there is equal percentage growth in capital and labour inputs.
D) additional units of capital are added to the other factors.
E) technology improves.

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