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Multiple Choice

Consider a pre-industrial society where living standards are at a subsistence level. In this society, any increase in the average product of labor (the amount of output produced per person) leads to an equivalent percentage increase in the population, which in turn pushes the average product of labor back down. Now, imagine a new era begins where technological innovations start to occur. Which of the following scenarios best describes the conditions under which this society would successfully break free from this cycle of stagnation and achieve sustained growth in living standards?

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Updated 2025-08-06

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