According to the Solow growth model,advanced economies with large stocks of capital will
A) eventually stop growing.
B) continue to grow at a constant rate.
C) always have levels of real gross domestic product (GDP)that are higher than the less advanced economies.
D) all converge to the same level of real gross domestic product (GDP).
E) never reach a steady state.

Question

Quizplus · Accepted Answer

According to the Solow growth model, advanced economies with large stocks of capital will eventually stop growing. This is because the marginal product of capital will eventually decline as the economy accumulates more and more capital.

According to the Solow Growth Model,advanced Economies with Large Stocks