In a neoclassical growth model, a nation with a declining population growth rate will experience
A)a decrease in living standards
B)an increase in living standards
C)a lower savings rate
D)an increase in long-term growth
E)a decrease in the steady-state capital-labor ratio

Question

Quizplus · Accepted Answer

In a neoclassical growth model, a declining population growth rate can lead to an increase in living standards. This is because with fewer people, the capital per worker can increase, leading to higher productivity and potentially higher income per capita, assuming other factors remain constant.

In a Neoclassical Growth Model, a Nation with a Declining