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Did I answer these 3 questions correctly? Refer to Figure 8A.1 to answer questions 10-13. Output y SY K Capital K Figure 8A.1 10) When

Did I answer these 3 questions correctly?

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Refer to Figure 8A.1 to answer questions 10-13. Output y SY K Capital K Figure 8A.1 10) When the economy reaches K, total saving is represented by point and depreciation is represented by point A) e; Y B)e; e C) Y; e D) Y; Y 11) The stock of capital no longer increases once the economy reaches point A ) a . B ) b . C) C. D) e. 12) Moving from K1 to K, will likely cause a problem of diminishing returns. The result of this will mean that A) economic growth stops. C) output increases at a decreasing rate. B) saving becomes negative. D) depreciation starts to decline. 13) Economic growth is most desirable when saving and investment can develop new capital goods. Technology and government incentives can also stimulate this development. Thus a movement from_?_to_?_is most desirable. A) e to Y B) Ko to K1 C) d to c D) K1 to K

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