The steady state is defined as the point where capital accumulation, $\Delta$ K_t, is equal to: A) the saving rate. B) zero. C) the depreciation rate. D) the productivity growth rate. E) the population growth rate.

Question

Quizplus · Accepted Answer

The steady state in an economic model is the point where capital accumulation is equal to zero, meaning that the amount of new capital being created is exactly balanced by the amount of capital being depreciated or used up.

The Steady State Is Defined as the Point Where Capital Δ\DeltaΔ

The Steady State Is Defined as the Point Where Capital $\Delta$