In the Solow model, the steady-state capital stock is a function of:
A) productivity and the initial capital stock
B) the initial capital stock, productivity, and the saving rate
C) the initial capital stock, productivity, and the depreciation rate
D) the labor stock and the steady-state level of capital stock
E) productivity, the depreciation rate, the labor stock, and the saving rate

Question

Quizplus · Accepted Answer

In the Solow model, the steady-state capital stock is determined by productivity, the depreciation rate, the labor stock, and the saving rate, as these factors influence the accumulation and maintenance of capital over time.

In the Solow Model, the Steady-State Capital Stock Is a Function