If the population of Country A grows at 3% a year but technology growth is zero, then the neoclassical model predicts that in the steady state

a. the capital-to-labor ratio will increase at 3% a year.
b. per capita output to grow at 3% a year.
c. per capital output to grow at less than 3% a year.
d. the capital-to-labor ratio to decrease at 3% a year.
e. a and b.

D

Economics

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A. Lasted from 1929-1933 B. unemployment rate was 25% and GDP fell 30% C. most severe downturn in US history D. severe inflation E. Stocks fell 90%

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What will be an ideal response?

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