-In Figure 5.1,if the economy begins with the initial capital stock at K2,the capital stock will __________ and the economy will __________.
A)decrease,grow
B)increase,grow
C)stay constant;be in its steady state
D)stay constant,shrink
E)stay constant,grow

Question

-In Figure 5.1,if the economy begins with the initial capital stock at K2,the capital stock will __________ and the economy will __________.
A)decrease,grow 
B)increase,grow 
C)stay constant;be in its steady state 
D)stay constant,shrink 
E)stay constant,grow

Quizplus · Accepted Answer

If the economy begins with the initial capital stock at K2 and K2 represents the steady state level of capital, the capital stock will stay constant, and the economy will be in its steady state.