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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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