Economics · Growth Models
According to the neoclassical growth theory, an increase in the saving rate:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Decreases the long-run level of capital and output per head.
- 2Decreases the steady-state capital-labor ratio.
- 3Increases long run growth rate of output.
- 4Raises the growth rate of output in the short run.✓
Correct answer
Raises the growth rate of output in the short run.
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