Solow's theory of economic growth concludes,"the possibility of steady growth would be a miraculous stroke of luck" because
A)the three "determinants," s,(Y/K)and n are caused by different unrelated behavior.
B)s reflects temporal consumption preferences.
C)d reflects unrelated depreciation.
D)n reflects birth control decisions.

Question

Quizplus · Accepted Answer

Solow's theory asserts that the determinants of economic growth - s, (Y/K), and n - are driven by different, unrelated behavior, making the possibility of steady growth a stroke of luck rather than something that can be achieved through deliberate policy actions. Option B, C, and D are specific components of the determinants, but they do not fully explain why steady growth is unlikely according to Solow.

Solow's Theory of Economic Growth Concludes,"the Possibility of Steady Growth