Economics · Economic Growth Models
If the production function exhibits decreasing returns to scale in the steady state, an increase in the rate of population growth would lead to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1No growth in total output or in output per worker
- 2Growth in total output but a decrease in output per worker✓
- 3Growth in total output but no growth in output per worker
- 4Growth in total output and growth in output per worker
Correct answer
Growth in total output but a decrease in output per worker
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