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Absence of technological change

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Suppose that the government passes a law requiring households to increase savings 10% above previous levels. According to growth theory discussed in the class (in the absence of technological change), in the short run

1) output per capita grows more rapidly.

2) output per capita grows at the constant steady state rate.

3) output per capita stays constant.

4) None of the above.

Reference no: EM131459743

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