One prediction of the Solow growth model is constant steady-state growth. Extrapolating growth rates from 1870 through 1929 using U.S. data generates predictions of per-capita GDP that are only away from actual performance.
A) 10 percent
B) 7.5 percent
C) 5 percent
D) 2.5 percent
E) 1 percent
Correct Answer:
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