In the Solow growth model in the steady state the growth rate of capital per worker, k*, is:
A)rising.
B)falling.
C)fluctuating.
D)zero.

Question

Quizplus · Accepted Answer

In the steady state, the Solow growth model predicts that the economy has reached a balanced equilibrium with a constant level of capital per worker. As a result, there is no further accumulation of capital, hence the growth rate of capital per worker is zero.

In the Solow Growth Model in the Steady State the Growth