CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

When output-to-capital ratio is above its equilibrium level, the growth rate of ______ is above the steady state rate.

I. labor force.
II. capital-to-labor ratio.
III. output per capita.
A. I and II
B. II and III
C. I and III
Explanation: Over time these growth rates will decline to the steady state rate (θ/1 - α).

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