In the Solow model,the steady-state level of output per worker is a function of:
A)productivity.
B)the initial capital stock,productivity,and the saving rate.
C)the initial capital stock,productivity,and the depreciation rate.
D)the initial capital stock and the steady-state level of capital stock.
E)productivity,the depreciation rate,and the saving rate.

Question

Quizplus · Accepted Answer

In the Solow model, the steady-state level of output per worker depends on productivity, the depreciation rate, and the saving rate, as these factors determine the steady-state level of capital per worker, which in turn affects output per worker.

In the Solow Model,the Steady-State Level of Output Per Worker