The neoclassical theory of growth identifies the steady-state rate of growth as the _________ just sufficient to keep ____________ constant while labour grows.

Question

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The neoclassical theory of growth, particularly as articulated by Solow, posits that the steady-state rate of growth is achieved when investment is just sufficient to keep capital per person constant, even as the labor force grows. This balances out depreciation and maintains per capita output levels over time.

The Neoclassical Theory of Growth Identifies the Steady-State Rate of Growth