In the graph of the Solow growth model,at any point to the right of the steady-state intersection we have national saving per person ________ than steady-state investment per person,causing (K/N)to ________.
A)greater,increase
B)greater,decrease
C)less,increase
D)less,decrease

Question

Quizplus · Accepted Answer

At any point to the right of the steady-state intersection, national saving per person is less than steady-state investment per person, causing the capital per worker (K/N) to decrease.

In the Graph of the Solow Growth Model,at Any Point