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Which of the following is not a basic result of the Solow growth model? C: A. A higher rate of population growth raises the level
Which of the following is not a basic result of the Solow growth model? C: A. A higher rate of population growth raises the level of output per person. O B. Increases in productivity directly increase output per person and also increase it indirectly by causing the capital-labor ratio to rise. C. A higher saving rate increases the levels of capital and output per worker but does not affect their longrun growth rates. 0 D. If different economies have the 3mm aggregate production function they will converge to similar levels of output per worker and per capita income. E. All of the above are results. The major flaw in the Solow growth model is that it does not explain sustained increases in output per worker and per capita income. I I\": A. True C) B. False
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