If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts that output will grow and that the new steady state will approach:
A) a higher level of output per person than before.
B) the same level of output per person as before.
C) a lower level of output per person than before.
D) the Golden Rule level of output per person.
Correct Answer:
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Q31: Starting from a steady-state situation, if the
Q32: If the national saving rate increases, the:
A)
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