A steady-state equilibrium refers to an equilibrium in which ________ remains constant over time.

Question

Quizplus · Accepted Answer

In a steady-state equilibrium, the stock of physical capital (machinery, equipment, buildings, etc.) remains constant over time as it is balanced by depreciation (loss of value due to wear and tear) and investment (adding to the stock of capital). The other options (GDP per capita, inequality, and poverty rate) could change over time and are not necessarily constant in a steady-state equilibrium.

A Steady-State Equilibrium Refers to an Equilibrium in Which ________