In the Solow model,the steady-state capital stock 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 labor stock and the steady-state level of capital stock.
E)productivity,the depreciation rate,the labor stock,and the savings rate.

Question

Quizplus · Accepted Answer

The steady-state capital stock in the Solow model depends on productivity, the depreciation rate, the labor stock, and the savings rate, as these factors determine the level of capital accumulation and output in the long run.

In the Solow Model,the Steady-State Capital Stock Is a Function