Economics · Economic Growth Models
Choose the correct option: Assertion (A): Long-run per capita output growth in the Solow model depends on technological progress. Reason (R): Capital accumulation alone faces diminishing returns.
- 1A is false, but R is true
- 2A is true, but R is false
- 3Both A and R are true, but R does not explain A
- 4Both A and R are true, and R explains A✓
Correct answer
Both A and R are true, and R explains A
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