CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

According the neoclassical growth theory, in the long run, if there is an increase in the population growth rate:

I. Capital per head will increase.
II. Capital per head will decrease.
III. Output per head will increase.
IV. Output per head will decrease.
V. The economy's growth rate will decrease.
VI. The economy's growth rate will remain the same.
VII. The economy's growth rate will increase.
A. II, IV and VII.
B. I, III and V.
C. II, IV and VI.
Explanation: Since per capital output will fall, we will have a negative growth rate in the short run. However, in the long run, the economy's growth rate will increase.

User Contributed Comments 1

User Comment
pjdeschenes Can anyone explain?
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