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In the Neoclassical Growth Model, If Capital and Labour Grow

Question 85

Multiple Choice

In the Neoclassical growth model, if capital and labour grow at the same rate, we will observe


A) increasing living standards but only for workers using capital- intensive production.
B) increasing living standards but only for workers using labour- intensive production.
C) rising GDP but falling living standards.
D) rising GDP and increasing living standards.
E) rising GDP but no change in living standards.

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