In the Solow model with constant technological knowledge (A), if the economy is initially below its steady-state capital stock:

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Quizplus · Accepted Answer

In the Solow model with constant technological knowledge, catching-up growth occurs when the economy is below its steady-state capital stock. The economy will experience increasing capital per worker and output per worker until it reaches the steady state. Therefore, choice A is the best answer.

In the Solow Model with Constant Technological Knowledge (A), If