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In a Steady-State Economy with Population Growth N and Labor-Augmenting

Question 3

Multiple Choice

In a steady-state economy with population growth n and labor-augmenting technological progress g, persistent increases in standard of living are possible because the:


A) capital stock grows faster than does the labor force.
B) capital stock grows faster than does the number of effective workers.
C) capital stock grows faster than does depreciation.
D) saving rate constantly increases.

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