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With an Increase in Total Factor Productivity in the Solow

Question 64

Multiple Choice
With an increase in total factor productivity in the Solow growth model,

With an increase in total factor productivity in the Solow growth model,


A) output decreases temporarily and returns to the previous steady state.
B) output increases temporarily and returns to the previous steady state.
C) the economy reaches a steady state with higher output.
D) the economy reaches a steady state with lower output.

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