One prediction of the Solow growth model is constant steady-state growth. Using extrapolation techniques for growth rates from prewar data for the United States, the United Kingdom, and Japan, which countryies) best supports) the Solow model's steady-state growth predictions?

Question

Quizplus · Accepted Answer

The United States best supports the Solow model's steady-state growth predictions. Historically, the U.S. has shown a consistent long-term growth rate, aligning with the Solow model's prediction of a constant steady-state growth.

One Prediction of the Solow Growth Model Is Constant Steady-State