Which of the following is NOT an outcome of the Solow growth model?
A) When a greater proportion of output goes to investment, more growth will occur.
B) Growth will be faster the further a country is below its steady-state level of capital stock.
C) Capital accumulation alone will lead to zero long-run economic growth.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

The Solow growth model suggests that capital accumulation alone leads to zero long-run economic growth due to diminishing returns, and that growth is faster when a country is below its steady-state level of capital. Therefore, all the statements are outcomes of the Solow model.

Which of the Following Is NOT an Outcome of the Solow