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In the steady state of an economy, described by the Cobb-Douglas production function, the: a) Amount of the capital/labor ratio is constant, that is, unchanging
In the steady state of an economy, described by the Cobb-Douglas production function, the:
a) Amount of the capital/labor ratio is constant, that is, unchanging
b) The output/labor ratio is positive but decreasing
c)Population growth and depreciation rates equal the amount of new investment per person to keep the amount of capital per worker constant
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