The Solow growth model assumes unemployment is:
A)zero.
B)falling.
C)rising.
D)constant.

Name: The Solow growth model assumes unemployment is: A)zero. B)falling. C)rising. D)constant.
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Question

Quizplus · Accepted Answer

The Solow growth model assumes a constant level of unemployment, known as the natural rate of unemployment, which is determined by structural factors in the labor market. Therefore, the answer is (D) constant.

The Solow Growth Model Assumes Unemployment Is