In the Malthusian model, the steady state effects of an increase in z are to

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Quizplus · Accepted Answer

According to the Malthusian model, an increase in z (which represents technological progress or an increase in land productivity) will lead to an increase in population due to the availability of more food and resources. However, the quantity of land per worker will decrease as the population grows, leading to diminishing returns to labor and ultimately leaving consumption per worker unchanged in the steady state. Therefore, the best choice is E.

In the Malthusian Model, the Steady State Effects of an Increase