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Assume That a War Reduces a Country's Labour Force but Does

Question 96

Multiple Choice

Assume that a war reduces a country's labour force but does not directly affect its capital stock.If the economy was in a steady state before the war and the saving rate does not change after the war,then,over time,capital per worker will ______ and output per worker will grow ______ than it did before the war.


A) decline; faster
B) increase; faster
C) decline; more slowly
D) increase; more slowly

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