In the Solow model with technological progress, by increasing the efficiency of labor at rate g:
A) the real wage and the real rental price of capital both grow at rate g.
B) the real wage grows at rate g but the real rental price of capital is constant.
C) the real wage is constant but the real rental price of capital grows at rate g.
D) both the real wage and the real rental price of capital are constant.
Correct Answer:
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