With steady state growth:
A)there is absolute convergence.
B)y/k is constant.
C)k* growth fluctuates.
D)all of the above.

Question

Quizplus · Accepted Answer

With steady state growth, the capital-output ratio (y/k) is constant. This means that the economy is not growing or shrinking but is rather in a state of equilibrium. Absolute convergence (A) and fluctuations in k* growth (C) do not necessarily apply to steady state growth.

With Steady State Growth