Suppose,due to the effects of a military conflict that has ended,that a country experiences a large reduction in its capital stock.Assume no other effects of this event on the economy.Which of the following will tend to occur as the economy adjusts to this situation?
A)a relatively low growth rate for some time
B)a relative high growth rate for some time
C)zero growth for some time, followed by a gradually increasing growth rate
D)positive growth, followed by negative growth, and then zero growth
E) none of the above

Question

Quizplus · Accepted Answer

When a country experiences a large reduction in its capital stock, it often leads to a period of rebuilding and investment to replace what was lost. This rebuilding process can stimulate economic activity and lead to a relatively high growth rate for some time as the economy adjusts and recovers from the reduction in capital stock.

Suppose,due to the Effects of a Military Conflict That Has