Which of the following combinations leads a country to increase its capital intensity at the slowest pace?
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Question:
Which of the following combinations leads a country to increase its capital intensity at the slowest pace?
a. low investment rate and high population growth rate.
b. high investment rate and low population growth rate.
c. low investment rate and low population growth rate.
d. high investment rate and high population growth rate.
In the Solow growth model output per capita eventually reach a steady state because of
a. the limits in the ability of policy makers.
b. the law of diminishing marginal product of capital.
c. too little saving.
d. the law of diminishing marginal product of labor.
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