If an economy is in the steady state,then
A) net investment is zero.
B) depreciation is zero.
C) investment is zero.
D) the marginal product of capital is zero.
E) there are no diminishing returns.

Question

Quizplus · Accepted Answer

In the steady state, the economy is in a state of equilibrium where the level of capital and output is constant over time. This means that the inflow of investment is equal to the outflow of depreciation. Therefore, net investment is zero.

If an Economy Is in the Steady State,then