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Suppose the working-age population of a country doubles because of immigration. The country, ...

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Suppose the working-age population of a country doubles because of immigration. The country, ...

Suppose the working-age population of a country doubles because of immigration. The country, however, neglects investment in research and development (R&D), and hence, its level of technology remains stagnant. Which of the following statements will be TRUE of this economy?

▸ The economy will experience steady economic growth.

▸ The economy's output will rise at an increasing rate over time.

▸ The saving rate will remain stagnant over the years.

▸ The economy cannot achieve sustained growth.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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Jchanis15 Author

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