Higher level of productivity

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Reference no: EM132080503

In the long run, a higher saving rate: always leads to a higher growth rate of output because of improvement in the stock of human capital. Does not lead to a higher level of income because of deterioration in labor productivity. Does not always lead to a higher growth rate of output because of diminishing returns to capital. Always leads to a higher level of productivity because of increasing returns to scale

Reference no: EM132080503

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