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      Question

      In the Solow growth model, long-run economic growth is

      determined by:
      A Capital accumulation only Correct Answer Incorrect Answer
      B Labor force growth only Correct Answer Incorrect Answer
      C Interest rate movements Correct Answer Incorrect Answer
      D Technological progress Correct Answer Incorrect Answer

      Solution

      In the Solow model, capital accumulation faces diminishing returns, so long-run per capita growth depends on technological progress, which shifts the production function upward and increases output per worker sustainably.

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